Question

A tax ________ reduces taxes owed dollar for dollar. Group of answer choices

deduction, plan, budget,credit, None of the answers are correct

2.

What is the term for a partially refundable tax credit for qualified education expenses with a maximum of $2,500 during the first four years of postsecondary education for an eligible student?

Group of answer choices

Postsecondary Tax Credit

American Opportunity Credit

College Tax Credit

Refund Credit

$2,500 and under tax credit

3.

Moving money from one employer-sponsored retirement account to the next:

Group of answer choices

is never necessary since the investor should always keep their retirement money with the original employer.

should never involve the money passing through the hands of the owner as that could result in a penalty.

should involve the money passing directly through the hands of the fund owner (the individual).

is quite simple as investors just have to ask for the funds and then deposit them in the new account.

is the responsibility of the employee's new employer.

4. After your savings plan is in place and your emergency fund is fully funded, where can you now turn your attention?

Personal Health

College fund

Investing

Relationship Goals

Vacation Fund

5.

One could argue that your home purchase is not really an investment at all, but rather a decision to attach to a community and a property, and to provide some hedge against what?

Group of answer choices

Community

Gas Prices

Renovation Costs

Inflation

Commuting

6.

Any time a major life event occurs, a review of your tax situation is in order to avoid the "April 15th surprise." A major life event includes: graduation, marriage, divorce, having a baby, adopting a child, receiving an inheritance, changing jobs, and what other major life event?

Group of answer choices

Significantly reducing or increasing your income

Negotiate Interest Rate On Credit Card

Update Appliances

Vacation

Groceries

Answer 1

1]

A tax credit reduces taxes owed dollar for dollar. This is because a tax credit can be used to reduce the taxes owed, dollar for dollar.

Tax deduction is incorrect because it only reduces taxes by an amount of (deduction amount * tax rate)

2]

American Opportunity Credit

3]

The correct option is - "should never involve the money passing through the hands of the owner as that could result in a penalty."

The investor does not always have to keep money with original employer. However, if it is transferred, it is not very simple because some employers may not allow it.