Usually refers to the money borrowed from a lender to buy a house; the borrower makes payments on the loan each month until the entire loan, along with interest, is paid in full.
What is mortgage
100
A tax credit for certain people who work, meet certain requirements, and have earned income under a specified limit
What is earned income credit
100
Wage and Tax statement. The form used to report wages, tips, other compensation, withheld income and social security taxes.
What is from W-2
100
Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.
What is medicare tax
200
The rate of interest (in terms of a percent, such as 8.75%) being charged for a loan over a year's time. The APR rate includes interest, transaction fees, and service fees.
What is annual percentage rate
200
How quickly an asset (any item of value that you own) can be turned into cash. In other words, you don't have to wait until a certain date or pay a penalty to withdraw your money.
What is liquidity
200
Things you pay money for, both wants and needs
What is expenses
200
Completed by the employee and used by the employer to determine the amount of income tax to withhold.
What is form W-4
200
The federal agency that collects income tax in the United States
What is IRS
300
A loan that enables people to buy something now and pay for it in the future
What is credit
300
The smallest amount you are required to pay a lender each month on a debt
What is minimum payment
300
Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are two types of exemptions-personal and dependency. Each exemption reduces the income subject to tax. While each is worth the same amount, different rules apply to each.
What is exemptions
300
Money, goods, services, and property a person receives that must be reported on a tax return. Includes unemployment compensations and certain scholarships. It does not include welfare benefits and nontaxable Social Security Benefits.
What is gross income
300
Money owed to taxpayers when their tax payments are greater than the total tax. Refunds are received from the government.
What is refund
400
Math formula that determines the number of years needed to double your money at a given interest rate. Here's how it works: you divide 72 by the interest rate. Therefore, money invested at 10% interest rate will double in 7.2 years.
What is rule of 72
400
Take money out of an account
What is withdrawal
400
The federal government levies a tax on personal income. The federal income tax provides for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.
What is federal income tax
400
An action taken to lessen tax liability and maximize after-tax income
What is tax avoidance
400
Include Social Security and Medicare taxes
What is payroll taxes
500
Hanging onto your money for a future use instead of spending it. Saving is the opposite of spending.
What is save
500
A type of investment that requires you to invest money for a certain length of time and guarantees the same rate of return (interest) for that entire time. CDs usually require a minimum deposit.
What is certificate of deposit
500
Provides benefits for retired workers and their dependents as well as for disabled workers and their dependents. Also known as the social security tax.
What is FICA tax
500
A system of compliance that relies on individual citizens to report their income freely and voluntarily, calculate their tax liability correctly, and file a tax return on time.
What is voluntary compliance
500
Taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends). Income tax can be levied on both individuals (personal income taxes) and business (business and corporate income taxes).