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Test Your Tax Smarts Quiz
1. What is the best tax-deferred savings plan to use for a child's college fund? - a) IRA plan
- b) SEP plan
- c) 529 plan
2. You are trying to do your income taxes. You have questions regarding some of the rules. You need help to get some of your questions answered. Where is the best place to get online tax help? 3. You heard that you can do your taxes and e-file them for free. However, you cannot make over a certain amount. What is that amount? - a) $50,000
- b) $25,000
- c) $54,000
4. Every year at tax time you know exactly how much money you made for the year. You feel that tax time is as good as any to know how much you made all year. 5. Is it True or False that the gross amount is the amount of money you bring home each month after taxes, benefits, and other deductions have been taken out? 6. If you itemize your deductions, you can write off medical expenses if they are a certain percentage of your adjusted gross income. What is that percentage? ANSWERS: 1. Answer C - savings plan designed for college, 2. Answer A - the official IRS website is www.irs.gov, 3. Answer C - you can file for taxes for free by going to http://www.irs.gov/ if you make less than $54,000, 4. Answer A, False - It is a good idea to always be aware of what money comes in each month, 5. Answer B - False, the net amount is what is brought home after deductions, 6. Answer C - Your medical expenses have to be at least 7.5% of your adjusted gross income to deduct. |
