EverFi Taxes

What are some examples of things taxes pay for?

• Social Security, communication and schools

• Social Security, investments and military

• School, first responders and roads

• Military, stocks and internet

. What type of taxes are used by retired people as income and also for people with disabilities?

• Social Security

• Income Tax

• Property Tax

• State and Local Tax

What is the key difference between deductions and credits when it comes to taxes?

• Deductions refer to money spent on goods, and credits refer to money spent on services.

• Deductions report your spending, and credits report how much you borrowed.

• Deductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe.

• Deductions are used for future tax bills, and credits are used to help with past tax bills

Maria has collected her receipts and needs to decide whether to take a standard or itemized deduction. Which answer choice best explains to Maria which type of deduction to claim?

• She should claim the deduction with the higher value.

• She should check her tax bracket status to see what works best for her.

• She should claim the standard deduction because it is usually more accurate

• She should claim the itemized deduction because she has receipts.

To file your taxes, you need to start by collecting all the necessary documents. Which answer selection is the best describing what is needed?

• A record of stocks and bonds that you bought in the past year

• Spreadsheets of all banking and investing accounts that you have

• Receipts of all purchases that you made in the past year

• A record of your income and receipts for any deductions you want to claim

Marcus has completed his federal return, and he is surprised that he will be getting a big refund. He wants to finish his return as fast as possible so what are two more things he will need to do before being officially done?

• File his state taxes and select how he wants to receive his refund.

• Since refunds are rare, Marcus will need to redo his tax return with professional help.

• Get the person claiming him to be a dependent to sign off on his taxes.

• Send a copy to his bank and to anyone claiming him as a dependent.

What is the government agency responsible for collecting taxes?

• IRS

• FED

• US Treasury

• FDA

How often do you have to file your taxes?

• Once a year

• Once a month

• Twice a year

• Twice a month

Payroll Taxes are used for...

• Medicare + Social Security

• Medicare + Military

• Social Security + Schools

• Military + Schools

Taxes usually get taken out directly from your...

• paycheck

• checking account

• investment account

• savings account