Taxes 1
What is a "dependent"?
A child or adult that you support financially
What is the date you must file your taxes or request an extension?
April 15
Your monthly insurance payment is called...
your premium
What you pay out-of-pocket before insurance starts covering any costs.
deductible
Mandatory government spending includes the FICA tax, which pays for...
Social Security and Medicare
What form is sent by your employer and records your yearly earnings and taxes withheld?
W-2
Who do you think pays a higher car insurance premium?
Alex - 21 years old, drives a new 2025 model car
Walter - 60 years old, drives a used 2015 model car
Alex
(at least 1 reason - multiple correct answers here)
- lower premium (employer pays part of premium)
- don't have to include in monthly budget from net income
- is deducted pre-tax (save a little on taxable income)
- plans are already chosen (less research needed)
Maddie is earning $2000 dollars a year at her job, and 500 as unearned income from a radio show prize. Will she be required to file for a tax return?
No! She does not earn enough to require filing taxes.
Your average tax rate based on all your tax brackets is called...
effective tax rate
Which is usually LOWER - your effective tax rate or your marginal tax rate?
This health plan has the most flexibility when choosing out of network care and access to specialist doctors, but has high premium costs.
(HMO or PPO?)
PPO
What type of government spending does Federal Income tax fund?
What is the purpose of the 1040 form? (Why do you have to file it?)
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government.
This is a FIXED health insurance cost that you have to pay for certain services (ie: when you go to the doctor's office, when you go to urgent care, etc.)
Copay
What does health insurance require that auto insurance does not?
An out-of-pocket max.
Health insurance requires you to pay even after you hit the deductible, but after you hit the deductible, you share costs with the insurance company.
Car insurance is "all-or-nothing" - they cover everything after your deductible (up to your coverage limit)
Lexi is a dependent that only makes $4,000 a year at her job. On her paystub, her job withholds $100 in taxes every month. So, in a full year, they withhold $1,200 of her $4,000 annual salary.
Is she required to file a tax return? What should she do? (multiple correct answers here)
She's not required to file! But...
She could
- re-do her W-4 and mark herself as exempt, so they don't withhold taxes
- file for a tax return anyways so she can get her money back as a tax refund