51 Cards in this Set
| Front | Back |
|---|---|
|
What are taxes taken directly from paychecks?
|
Income taxes (federal/state/local)
|
|
When do we need to file income tax forms?
|
April 15th
|
|
What is the percent taken out for SS and Medicare?
|
15.3
|
|
What are examples of license or fee taxes (recognize which is/not from a M/C list)
|
Driver's License, fishing/hunting/boat, building permits, marriage license, license plates, dog tags
|
|
What is a tax called that is “built into” the retail price?
|
Sales Tax
|
|
What are the Wealth/Property tax categories?
|
Capital gains, estate, inheritance, property and real estate
|
|
What is an example of an “optional” tax?
|
lottery
|
|
How many days a year do we have to work to pay our taxes? What is the day called when all are accounted for?
|
Tax Freedom Day, 108 days
|
|
What should the tax freedom day have been based on what the governments are spending?
|
May 9
|
|
In 2009 about ____% of Americans paid no income tax. Why was that?
|
47%, no income
|
|
What type of tax is a progressive tax – what is the tax we pay that best fits this?
|
income tax 10%-35%
|
|
Why is my earned income different than my taxable income?
|
There are various deductions and exemptions
|
|
How many tax brackets are there and what is the range in %?
|
7 brackets, 10%-39.6%
|
|
A tax that takes more from a low earning citizen than a high earner is a _____ tax.
|
regressive
|
|
What is the IL tax rate? What do we call this type of tax that is the same for all income levels?
|
5%, flat tax
|
|
What is the tax called that is charged on an asset sold for a higher value than you paid for it?
|
capital gains
|
|
Be able to recognize in a M/C format the terms W-2, 1099, Exemption, deduction, Tax credit
|
W-2:used by employers to report employee income and withholding to employee and IRS
1099: form to report interest earned items
Exemption: income subtracted based on the number of people the taxpayer supports
Deduction: expenses allowed to be subtracted from income before figuring tax
…
|
|
How many years should you keep most income tax information? How many years can IRS go back to audit?
|
5-7 years, 3 years
|
|
Real estate is assessed at what percent of value in most of IL?
|
1/3
|
|
How much does an owner occupied exemption reduce an EAV?
|
$6,000
|
|
What do the EAV stand for?
|
Equalized Assessed Value
|
|
Be able to calculate a tax amount, given the EAV and tax rate.
|
...
|
|
What are the 4 common mistakes in managing cash
|
1. Overspending-impulse and credit cards
2. Insufficient liquid assets to pay bills
3. Savings or borrowing to pay for current expenses
4. Failing to put funds in savings account or investment plan long term
|
|
What is a trust?
|
Legal agreement that can be set up to manage money for another party
|
|
What is the difference between a debit card and a credit card
|
Debit card-money in our own accounts
Credit card-borrowing money
|
|
What is the difference between a bank, a savings and loan, and a credit union?
|
Bank-offers checking, savings, lending and other services
Savings and loan-specializes in savings accounts and mortgages
Credit union-user-owned, non-profit cooperative financial institution
|
|
What is used when you agree to place savings in a financial institution for a guaranteed period of time?
|
Certificate of Deposit
|
|
What is the organization that backs banks to protect depositor monies?
|
Federal Deposit Insurance Corporation
|
|
How much does it cost to buy a Patriot Bond with a face value of $1000?
|
$500
|
|
What is the difference between a blank, restricted, and special endorsement?
|
Blank-signing the back of a check payable to me
Restricted-only deposited, not cashed
Special endorsement-"Pay to the order of" and sign it
|
|
What is the process called to compare your checkbook balance with the bank each month called?
|
reconcile
|
|
What is the difference between a cashier’s check and a certified check?
|
Cashier's check: written from your account by the bank
Certified check: "personal" check guaranteed by a bank
|
|
What is an ACH process and why should I understand that as I write a check?
|
Automated Clearing House- speed up the withdrawals from funds, make sure enough money is in your account
|
|
What are 3 examples of how we use credit BESIDES credit cards?
|
-Utility bills
-Health care or prescriptions
-buy car
|
|
What are the 3 choices for sources of payment we have as we purchase goods or services?
|
-savings
-present earnings
-borrow
|
|
Today about ______% of population holds ________% of debts
|
30%, 60%
|
|
What are the 8 advantages of using credit cards?
|
Enjoy goods and services now
Permit purchases when cash supply is low
How else would be pay for utilities
Safer
Necessary for booking flights, hotels, internet shopping
Sometimes rebates/discounts for using company card
Good credit use shows stability to businesses
Can provide a “…
|
|
What are 4 Disadvantages of using credit cards
|
-Temptation to overspend
-Bad credit-legal ,job, loss of property issues
-immediate satisfaction-does NOT increase buying power
-Costs money to use-interest
|
|
How old must you be now to get a credit card?
|
21
|
|
What is the maximum risk of loss if your debit card is stolen and reported promptly? What about credit cards?
|
-Debit-$50
-Credit-no risk
|
|
If you borrow funds that you have paid into your home that type of loan is usually called a ________
|
-Home Equity loan
|
|
Please be able to calculate an equity loan problem like you did on your assignment
|
...
|
|
What was the range suggested for your credit capacity as you calculate your monthly debt /net monthly income (without a mortgage)
|
20% or less (15% is better)
|
|
What are the 3 primary credit bureaus that most businesses use?
|
-Experian, Equifax, Trans Union
|
|
How long are most credit report records kept?
|
7 years
|
|
What is the website to be used to access your free credit report?
|
annualcreditreport.com
|
|
How often can you receive a free report from each of the 3 major bureaus?
|
1 time a year
|
|
What is the most common acronym credit score used?
|
FICO
|
|
What are the 5 areas that contribute to your FICO score? Which 2 are the most important?
|
Payment history**, Amounts owed**, length of credit history, New credit, types of credit in use
|
|
What are the 5 C’s of Credit that have been the pillars of accessing credit over time?
|
-Character
-Collateral
-Capacity
-Capital
-Conditions
|
|
What are the 2 common forms of Personal Bankruptcy?
|
Chapter 7-personal
Chapter 13- business
|
FCS 233: EXAM 1