Deducing Your Deductions: The LSB Tax Deductibility Quiz

posted 2/21/2014 in General

As we discussed in our first post this week, it is tax season. For most, this is the one time of year when we suddenly care about taxes, and hurriedly try to figure out everything we need to know. However, Lincoln Savings Bank believes it is wise to understand taxes, and more importantly, deductions you can make to lower your tax bill.
Again, as we stated in our earlier post about tax season basics, we are not tax professionals. We are your financial partner, meaning we do everything we can to help you reach your financial goals. With that in mind, the following is a tax deductibility quiz to see just how savvy you are when it comes to common tax deductions. Answers are below the questions, but no cheating! Good luck!
  1. Last year you accepted a new job that required you to move. True or false: you can write off moving expenses even though you don’t itemize. A. True   B. False
  2. You use your accounting knowledge to do the books for a community non-profit. This is a nice deduction, right? A. True   B. False
  3. True or False: alimony is tax deductible. A. True   B. False
  4. True or False: child care payments can be deducted by the payer. A. True   B. False
  5. Out-of-pocket charitable contributions, through payroll deductions or charitable gifts, are deductible. A. True   B. False
  6. Sending your kids to private elementary or high schools pays off as a tax deduction, true or false? A. True   B. False
  7. You made a payment on your child’s college loan. Who gets to take the deduction? A. You   B. Your child
  8. You had to find a new job last year, and racked some expenses – gas for your car, parking, tolls, food and lodging (for overnight stays), and printing costs. You can claim these as deductions. A. True   B. False
How did you do? Six to eight questions correct is pretty good, four to five is average, but anything less than four means you need to brush up on your tax deductibility knowledge. Lincoln Savings Bank hopes these tips help you as you work through your taxes this year. If you have further questions, please consult a tax professional. Good luck, and we hope to see you soon!
Lincoln Savings Bank, member FDIC
Answers: 1A, 2B, 3A, 4B, 5A, 6B, 7B, 8A
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