YOUTH LINK JEOPARDY!!

TAXES

100

What date is usually the deadline to file taxes each year?

April 15th. Federal taxes are due April 18 this year because the 15th falls on a weekend.

200

How much money can I make before I must file a tax return?

For individuals who are not anyone’s dependent, you must file a tax return if you made $10,350, or $400 if you are an independent contractor/run a business. If you are a dependent and made over $6,300 in earned income, you also must file a return. Please remember that if you had money withheld from your paycheck for income taxes and you made less than the filing requirement you should still file a return to get your withholdings refunded. Plus, you may be eligible for the Earned Income Credit (if you are not a dependent).

300

I am 18 years old and live with my parents and earned $8,000 last year, am I a dependent?

It depends. If you lived with your parents over half the year, if your parents provided over half your support, and if no one besides your parents can claim you as a dependent then yes, you are their dependent. Remember if you are a dependent and made over $6,300 you will need to file a tax return.

400

If I have a baby will I get a bigger tax return?

Very likely. There is often a tax benefit to having a child dependent. Some examples: 1) Dependency exemption. You can claim a dependent exemption deduction of $4,050 for each child.Those exemptions reduce the portion of your income that is subject to federal tax; 2) Child Tax Credit. The Child Tax Credit is an additional $1,000 credit you may be able to claim for children under 17; 3) Child and Dependent Care Credit. If you are working or actively seeking work and you pay child care for your dependent who is under age 13, you can claim the Child and Dependent Care Credit; 4) Earned Income Tax Credit. There’s a special tax credit available if your wages and self-employment income fall below a certain level. How much you can earn and qualify for depends on how many dependent children you have.

500

What is a Refund Anticipation Loan (RAL)?

A refund anticipation loan is like an advance on your tax refund. Instead of waiting for your refund from the government, you can get the money instantly in the form of a loan from your tax preparer. When the IRS processes your return, any refund due to you is paid to your lender. The loan gets wiped out, and you're done. However, RAL's can be costly when you add in the fees and interest. It may be better to look for a local Volunteer Income Tax Assistance (VITA) program site, where your taxes can be done for free!

HOUSING

100

Your heat is not working in your apartment in January. You call your landlord and he says you were using it too much by setting the thermostat too high, so you will have to fix it yourself. Is this correct?

No. Landlords are responsible for keeping a property up to code and make repairs that are necessary to keep a property safe and habitable. Heat is a necessity in January. A tenant may be responsible if they broke an item by using it improperly--but setting the thermostat at a high level is not improper.

200

You sign a rental agreement with your best friend. You both pay half of $700 each month. Your roommate loses his job and cannot pay his half of the rent. You go ahead and pay your half to the landlord. Can your landlord evict you, or just your roommate?

Your landlord can evict both of you. You and your roommate have what is called joint and severable liability. This means even if one roommate cannot pay, the other roommate is liable for the entire amount owed under the agreement.

300

You could not pay your rent. Your landlord tells you that you have three days to pay or else you will be evicted. You could not pay in the three days. Can your landlord show up with the Sheriff and kick you out?

No. The landlord must go to court and after a hearing a judge can issue an order evicting you.

400

You are upset when you find out your landlord entered your apartment while you were at work without telling you. You talk to the landlord and he says he needed to check the faucets in all the apartments in the building to make sure they were working. Can your landlord do this?

No. While a landlord has the right to enter an apartment, he or she must give the tenant a 24 hour notice before entering, unless it is an emergency.

500

You like to play your music loud. A neighbor in the apartment next door complains to your landlord. Your landlord talks to you about the problem. You tell your landlord that you will turn the music down. Your friend stops by while you are gone and decides to play some music. A week later you find out that the neighbor complained again about the loud music. Your landlord threatens to evict you. You think this is unfair since it was not you who played the music loud. Can you be evicted due to your neighbor’s complaints?

Yes, you could. A tenant must not do things that will disturb a neighbor’s peaceful enjoyment and use of the property. This includes the tenant's guests. Loud music can be considered an improper disturbance. The landlord will first need to properly serve you with a 7 day notice that describes the problem. If you fix the problem within the 7 days, then the landlord can take no further action; however, if the same problem happens again in the next 6 months the landlord may not need to allow you time to fix the problem the next time and could terminate the rental agreement.

TRANSPORTATION

100

You are an excellent driver so you decide not to buy insurance after you purchase a new car. Is it legal to drive a vehicle in Iowa that has no insurance?

No. If you get caught driving without insurance or get into an accident you will have to pay a fine and could lose your drivers license.

200

You buy a used car from someone selling it on the internet. You took a test drive before purchasing the car and everything seemed fine; however, the day after you bought the car it will not start. Can you take it back to the seller and demand that he or she fix the problem or take the car back?

Probably not. Most used cars in Iowa are sold "As Is". This means that you buy the car as it is, no warranties. You should always have a mechanic check a used car out before purchasing it.

300

Your budget is a little tight and you are unable to make your car payment to the bank for the month. You figure missing one payment is not a big deal. A few days later you get a notice from the bank saying you need to pay the late totals within 20 days. You send in half the payment within the 20 days since it is all you have. Can the bank still repossess your car after the 20 days?

Yes. A lender must send a written 20 day notice demanding that late payments be paid in full within the 20 days. After the 20 days, if the late payments are not paid in full, the lender may repossess the vehicle.

400

You borrow $3,000 from a family member and use this as a down payment for a used car. You pay $6,000 total for the car. After three months you realize that you cannot afford the car. You take it to the car dealer and complete a “voluntary repossession,” meaning you give up ownership of the vehicle. Since you returned the car, does this mean you do not owe anything else on the car loan?

No. The auto dealer has the option to keep the car and satisfy the debt; however, the dealer can also auction the car off and apply any amounts from the sale to the amount remaining on the $3000 that you borrowed. The cars at auction often sell for much less than is owed on the car loan. If that is the case, the dealer may then sue you for the remaining amount that is owed for the vehicle. This is called seeking a “deficiency judgment.”

500

You fall behind on your car payments. You receive a written notice from the bank demanding that you make all late payments in 20 days. You cannot make the payments. A repossession company shows up at your house. They ask you to open the garage door and let them take the car back. You refuse. Can the repossession company open your garage door without your permission to take the car?

No. They would be trespassing and disturbing the peace. The general rule is that a creditor cannot use force or threats and cannot seize a borrower’s property if the borrower objects when repossessing property.

STUDENT LOANS

100

What does it mean to "default" on a student loan?

It means you stopped making payments on your loan and it is now delinquent. Your loan will be placed in default if you make no payments for 270 days. The delinquency will continue until all payments are made to bring your loan current. Loan servicers report all delinquencies of at least 90 days to the three major credit bureaus. A negative credit rating may make it difficult for you to borrow money to buy a car or a house. Being in delinquency also means you cannot apply for future student loans. You should call your loan holder to enter a payment plan.

200

You received an associate degree in nursing from a local community college, and you have $10K in student loan debt. You have not been making student loan payments. The only paperwork you’ve received about collecting this debt is a notice sent to you from the Department of Education. A little over a month after receiving this notice in the mail, your tax return is taken and used to pay a portion of this debt. Your friend tells you debt collectors cannot take your taxes. Can your tax refund be garnished to pay student loan debt?

Yes. The federal government can garnish specific gov’t benefits and tax returns to collect delinquent student loans that other debt collectors usually cannot take.

300

What is the difference between a direct subsidized loan and a direct unsubsidized loan?

Subsidized loans are based on financial need and do not accrue interest while you are in school and even for a time period after you graduate. The government subsidizes the interest. Unsubsidized loans accrue interest the entire time you attend school and are not based on financial need.

400

You went to college to try to be a nurse, but dropped out after deciding it was not the right career for you. You have $20,000 in student loan debt. You also have $10,000 in credit card debt. Your friend tells you that since you did complete your nursing degree, you can have the student loan legally discharged and would not be responsible for any further payments. This seems fair to you, but is your friend correct?

No. If you are totally and permanently disabled that may be a basis for discharging your student loans. Also, if your school falsely certified your eligibility to receive the loan based on your ability to benefit from its training, and the school did not properly qualify you under their admission requirements, you may have a basis to discharge the debt, and also, under very rare circumstances, you may be able to discharge the debt in a bankruptcy.

500

Which of the following are unable to obtain federal student loans? 1) A U.S. Permanent Resident; 2) an "I-94" holder with status as a refugee; 3) an undocumented victim of domestic violence; 4) Deferred Action for Childhood Arrivals (DACA); 5) All of the above.

DACA. Undocumented students are not eligible for federal financial student aid, but they may be eligible for state or college institution aid or scholarships.

MIXED BAG

100

When are you considered an adult in Iowa?

In Iowa, the "age of majority", or the age that you are considered an adult and can make your own decisions, is when you turn 18.

200

You are worried about what would happen if you were in a terrible accident and went into a coma. You do not want your doctors to keep you alive on machines when will never recover. You tell your friend, George, to make that decision for you. By telling George this, are your wishes going to be followed?

Probably not. George is not a relative. if you are a minor, the hospital will ask you parents to make the decision, or if you are an adult, they may ask a member of your family to decide. If you are an adult, a better decision would be to create a living will. This is a document in which you say whether health care providers should withdraw life-sustaining procedures if there is no hope that you can recover.

300

Your dream apartment becomes available and you want to break your lease and move. You talk to your landlord—he/she says you have 5 months left on your one year lease and you need to honor that. You decide to move anyhow. Can you break the lease?

Yes, but there will be a cost. You are technically responsible for paying rent for the next five months and your landlord can sue you for this; however, your landlord has an obligation to “mitigate” damages, meaning he/she must try to re-rent the property before suing you for the five months. The landlord can also keep your rental deposit and use it for damages or unpaid rent. Breaking the lease early could prove costly.

400

You write a check for $100 to pay for your groceries. You forgot to deposit your pay check in your checking account the next day and the check you wrote to the bank is denied because you have insufficient funds in your account. You get a call from an employee at the grocery store and he threatens to have you arrested for writing a bad check. Can you be arrested?

Probably not. To be charged with fraud for writing the bad check, the county attorney would need to show that you intentionally wrote the bad check knowing that you would not have the funds to cover it. Here, you accidentally forgot to deposit your check on time. Most likely, no charges would be filed. You would need to pay the grocery store and also pay a fee to the bank for returning the check.

500

You work at a restaurant. Your boss lets you eat for free after your shift. A new boss is hired and and sees you eating after your shift. He approaches you and without any warning he tells you you are fired for eating without paying for it. Two part question: 1) Can your boss fire you? 2) Can you still qualify for unemployment benefits?

#1 Yes. Iowa is an “at will” employment state. This means you can be fired for any reason that’s not discriminatory. #2: Yes, you should qualify for unemployment benefits since your new boss did not tell you about the rule change. In Iowa you can be fired and still qualify for unemployment benefits. You will not qualify for unemployment if you were fired for committing an act that is considered to be “misconduct”. Misconduct is different in every case, but it generally means doing something on purpose not in the employer's best interest. Typical examples of misconduct are:  Being rude to a customer.  Being late too many times.  Fighting with a co-worker.