Personal Finance: Budget Variances and Tax Planning

All of the above are all mentioned as goals of budgeting at the end of the video.

According to the end of the video, what is the goal of budgeting?

Living within your income, spending money wisely, & attaining financial goals.

According to the end of the video, what is the goal of budgeting?

Deficit

According to the video, a (n) ____________ is the amount by which actual spending exceeds planned spending.

Large Family Credits

According to the video, which of the following is not an example of tax credits?

3,000

Grace saved $3,000 by using a tax credit. Assume Grace is in a 25% tax bracket. What is the amount of her tax credit?

can deduct; not deduct

Mark is divorced from his wife Sharon. Mark pays alimony to Sharon and ____________ this amount on his tax return. If Mark paid child support, he could ___________ this amount on his tax return.

50%; 85%

Retirees also have varying amounts of social security that is taxed based upon the amount of their income. In some cases, the difference can vary between _____ and _____ being taxed.

Tax evasion; tax avoidance

_______________________ is the use of illegal actions to reduce your taxes, where as ________________________ is the use of legitimate methods to reduce one's taxes.

1,760 2,200 x .20 = 440 2,200 - 440 = 1,760

Jacob contributed $2,200 to charity within this past year, which qualifies for a tax deduction. Tucker saved $2,200 with a tax credit within this past year. Assume both Jacob and Tucker are in a 20% tax bracket. What is the difference between Tucker's tax credit and Jacob's tax deduction?