unit 4 Flashcards
Insurance helps you transfer the _____ from your bank account to the insurance company
risk
Life insurance guarantees your loved ones a certain amount of money when you
pass away
In return for paying the insurance company a fee, they will
pay for certain expenses or damages
Comprehensive coverage pays for loss or damage to your car caused by
anything other than a collision
Through the affordable care act, you can stay on your parents health insurance until
you turn 26 years old
the purpose of life insurance is to replace your ____ when you die
income
The amount of money the insurance company agrees to pay for an accident
is coverage
Homeowners insurance costs are ____ in states that are more susceptible to hurricanes, floors, or tornados
higher
your ___ ___ has all the information you would need in case of an accident
insurance card
____ _____ ______ will cover you if someone steals your personal information
Identity theft protection
_____ is the amount you have to pay before the insurance company will make a payment
deductible
Getting good grades, driving safely, and driving an older car are examples of ways you can
lower your auto insurance costs
Withholdings and deductions are expenses that are taken out of
your paycheck
The tax on the purchase of goods or services is called
consumption tax
Every American who earns an income must file a
federal tax return each year
When you buy clothes or check out at the grocery store, you will pay
sales tax
There are two general types of taxes. Taxes on the money you ____ and taxes on the money you ____
earn and spend
The deadline for filing your income tax return usually falls on
April 15
Net income is also called your
take home pay
Consumption tax pays for things everyone gets to enjoy, like
parks, libraries, and zoos
___ is the total tax a person or business has to pay
Tax liability
Always keep your filed taxes for at least three years in case the IRS decides to ___ your tax return
Audit
____ are most likely to need the help of a tax professional
self employed people
When you buy specific items like cigarettes, alcohol, airline tickets or gas, you pay
excise tax
The money you earn hourly for your time and effort at work is called
wages
The form W 4 estimates how much tax you will ower based on
your personal situation
Why is receiving a large tax refund a bad thing?
your giving to much of your paycheck to taxes during the year. If less is taken out for taxes, you’ll get a smaller refund but more money in each paycheck for expenses or saving and investing
