1. Cassandra is 19 years old. Her parents claim her as a dependent on their tax form, and her earned income this year was $13,000. Does she need to file a tax return?

A) Yes, because her income exceeded the limit for not having to file.

B) No, because her income was under $13,200.

C) Yes, because she is over age 18.

D) No, because her parents claim her as a dependent.

2. Your employer offers dental insurance for $590 per year pretax through your employee benefit plan. However, your employer does not contribute toward the cost, and your marginal tax rate will be 22 %. Buying the dental insurance through payroll deduction A) does not offer any financial advantage to you.

B) will cost you 22% of $590, so the net cost is $720.

C) will save you $130 in taxes, so the net cost is $460.

D) will cost you 22 % of $590, so you will save $460.