Question

True or False

_The nice thing about traditional IRA's is that they are tax-free

_Writing checks that you know will bounce is usually not a problem

_You can easily calculate your FICO score on your own using their formula

_Federal Income Tax in the US is a progressive tax

_All states have a sales tax

Answer 1

1) The nice thing about the traditional IRA's is that they are tax-free. False

The way in which individual retirement account (IRA) withdrawals are taxed depends on the type of IRA.

You'll pay tax on withdrawals from a traditional IRA

2) Writing checks that you know will bounce is usually not a problem. False

Writing checks that you know will bounce can cause a variety of different problems for you. You’re likely to pay significant fees, you may lose the ability to write checks in the future, you risk legal issues, and your credit can suffer.

3) You can easily calculate your FICO score on your own using their formula. False

The Fair Isaac Corporation perpetuates the mystery of its FICO scores by never releasing the details of its secret formula. Even if it were known, the fine points of its methodology are still subject to change at its discretion.

4) Federal Income Tax in the US is a progressive tax.  True

A proportional tax also referred to as a flat tax, impacts low-, middle-, and high-income earners relatively equally. They all pay the same tax rate, regardless of income and the best example is Federal Income Tax.

5) All states have a sales tax.  True

The tax applied to the final sale of a product or service in the US is called Sales Tax. Unlike VAT or GST, sales tax is not a flat rate that is applied to your invoices across the board; it differs from state to state and product to product.