Student Loans
There are ways to increase your chances of getting a lower interest rate on your loans. Name ONE.
What are: good grades, good credit, having a co-signer, using a credit union, enrolling in auto-pay, etc.
What two taxes go into the contribution for FICA?
What are: Social Security and Medicare
What does the IRS stand for and how does it communicate with taxpayers?
What is: The Internal Revenue Service & by mail ONLY
Beside salary/wages - What TWO financial factors need to be taken into consideration when considering and/or comparing job offers?
What are: Benefits and The cost of living index
Name THREE ways you can provide proof of identification for the I-9 tax form
What are: Passport, SS card, DL, student I.D., birth certificate, etc.
When accepting student loans, which offer is generally the loan option to accept: Federal or Private?
What is: Federal loans are almost always the better choice of the two
The percentage you pay in Federal Income Tax is determined by what TWO factors?
What are: Annual Income and Filing status
There are how many U.S. states with NO income tax of their own?
What is: 9
Individuals should personally invest in "THIS" in order to help secure a better job or career ... defined as "The skills, knowledge, and experiences possessed by an individual"
What is: Human Capital
This tax document is provided by your employer. You obtain one for each employer you have.
Name the document AND the time of year you can expect to receive it.
What is: The W-2 form & typically in January
What is a "co-signer" and why might you have one on a loan?
What is:
1. A co-signer is a person who is obligated to pay back the loan just as you, the borrower, are obligated to pay. A co-signer could be your spouse, a parent, or a friend.
2. Co-signing gives your lender additional assurance that the loan will be repaid. You may get a better interest rate with a co-signer. If your credit isn't the best, OR if you are considered to be a "young" applicant by the lender, then you may need one to sign as a form of assurance for the lender.
What is an example of an excise tax?
What are: gas, hotels, cigarettes, alcohol, airfare, firearms, indoor tanning services, sport fishing equipment
What are TWO examples of unearned income?
What are: gambling/lottery, inheritance, dividends, interest, gifts, rent collections, etc...
When considering a new salary or wages, it's important to remember that apx. _____% TOTAL is taken out for taxes?
What is: apx.30%
This form is used to report additional earnings beyond/outside of the wages reported on your W-2
What is: The 1099 form
Name THREE different expenses you need to consider when estimating the amount for borrowing.
What are:
Tuition; Room and board; Parking/travel; Textbooks/Software; Meals (Meals plans/Outside food and drink); School supplies; Student Dues
Name the five MAIN types of taxes
What are:
1. Income tax
2. Payroll tax
3. Sales tax
4. Property tax
5. Excise tax
Which TWO tax forms need to be completed prior to starting a new job?
What are: The I-9 and the W-4
THESE are known as, "versatile skills that are applied to personal and professional roles"
What are: Transferrable skills
What is the purpose of the W-4 tax form?
What is: To determine the employee's withholdings and/or allowances + claim dependents
Describe the "debt/earnings ratio" and why does that need to be a consideration when going to college and applying for student loans?
What is: Loan applicants want the best education they can get, but they also need to make sure it's within their reach. You need to be realistic with your goals and expected future career path and determine how long it may take to pay back OR if it's even doable. You'll need to do your best to estimate how much student debt you have in comparison to the salary you expect to be earning.
Explain how income and property taxes can influence the quality of living in a community. Give SPECIFIC details.
What is:
*higher wages=higher taxes=more pool of money for govt. investment
*higher wages=better affordability for property...property is taxed on value...higher property value=greater sum of tax revenues for state and local investment in that community
What percentages of your wages are taxed for Social Security and Medicare?
What are: 6.2% and 1.45%
Describe the "cost of living" index and what is considered in the calculation
1.The "cost of living" is the amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time period.
2. Salary in city 1 x
COL Index of City 2 / COL Index of City 1
= Equivalent Salary in city
1. Name the tax form that is used to file your annual taxes.
2. How would you calculate whether you owe money to the govt. or can expect a tax return?
What is:
1. The 1040 tax form
2. You would take your AGI/Taxable income (after deductions & credits) and multiply that by the accurate percentage of income tax you would be subject to. Compare that number to the amount of wages taken out (found on your W2) and the difference will indicate if you paid enough in taxes OR if you have not met the adequate amount due.