Which of the following typically have the highest auto insurance premiums?
Young, inexperienced drivers
Why might you complete a 1040 instead of a 1040EZ?
You own a home.
In which of the following scenarios will you be entitled to pay the least amount of money out-of-pocket for a medical expense?
You have health insurance with a $500 deductible.
Which is an example of a withholding you might see on your pay stub?
Both A and B (Health Insurance and Retirement Savings)
On a pay stub, what is the difference between “Net Pay” and YTD Net Pay”?
Net Pay is how much you’ve made during a pay period, YTD Net Pay is how you’ve made this year.
When starting a new job, the form you complete to determine how much tax to withhold from your paycheck is called the _______.
W-4
Insurance can help you:
financially protect against unexpected accidents
Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
The amount you owe in state income tax is based on:
Your yearly earnings.
When you purchase an item in a store, you may be charged __________.
Sales tax
Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-of-pocket for a car accident before your insurance covers your costs?
$700
If you are in a car accident caused by someone else who also has insurance, which type of insurance plan will not require you to pay out of pocket costs?
Either A or B (High deductible plan and Low deductible plan)
Tax that you pay when making a profit from selling a house is an example of:
Capital Gains Tax
Which of the following statements about taxes is FALSE?
Taxes at the local, state and federal level are all equal
If you cause a car accident, which type of insurance will require you to pay the least out of pocket?
Low deductible plan
Which of the following would likely be covered under homeowners insurance but NOT by renter’s insurance?
A tree branch breaks your bedroom window during a storm.
Which of the following are NOT deducted on a typical paystub:
Sales Tax
1040EZ
An end-of-year tax form that is used to determine the amount of income tax owed to the IRS. If your tax situation is simpler, you can fill out a 1040EZ form – which can be submitted by paper or online.
W-4
This form determines how much money will be withheld from your paycheck for taxes.
W-2
Which shows you how much you made and how much you owe in taxes; comes from employer on January 31st
YTD
The amount you have earned in the year so far
Taxes Withheld
Amount taken out of your paycheck to pay for taxes
Social Security
A tax that pays for the retirement benefits for people who are currently retired and for future retired
401k
An optional retirement savings plan sponsored by your employer
Federal Income Tax
Based on how much money you earn each year; the fed. govt. charges income tax to everyone who earns money (is deducted from your paycheck and is paid to the state and federal govt)
State Income Tax
Based on how much you earn annually; the percentage of your income that is taxed varies between states
Property Tax
Based on the value of owned property, like land, buildings, or houses. The property tax rate depends on your state, local jurisdiction, and the value of your property (is usually collected by local govt and supports local things)
Capital Gains Tax
Charged on any profit you make from selling something at a higher price than you bought it; usually from the sale of stocks, bonds, or property
Sales Tax
A tax on a sale of merchandise or services (only used in some states)
Local, state, and federal taxes
Are required charges from the government that pay for certain government services, like the fire department, public schools or police protection.
Premiums
monthly cost for insurance
Deductible
Amount you must pay before you begin receiving any benefits from your insurance company
Insurance companies consider for cost of premium:
Driving records, tickets, types of cars, grades
The higher your deductible
The less your insurance policy will cost.
Coverage
Refers to how much protection you are eligible to receive under your insurance plan. It is more expensive to have more of this
Claim
The request you make to your insurance company for payment based on the terms of your insurance
Co-pay
Term used in medical insurance. It is a fixed fee that you pay for covered medical services
Auto Insurance
Protects other people and their cars, is required in most states
Homeowners insurance/Renters insurance
Homeowners overs home and possessions, renters only insures items in your home
Health Insurance
insures cost of any medical expense, but the amount of coverage depends on the type of insurance policy
Disability Insurance
helps cover lost income when an illness or injury prevents you from working
Life Insurance
Ensures that another person (your beneficiary) will be financially protected if you pass way
Insurance
Is a way of managing risk. Without insurance, when bad things happen, you have to pay for all costs out-of-pocket.
x

Hi!
I'm Niki!

Would you like to get a custom essay? How about receiving a customized one?

Check it out