Tax Terms
What is the IRS
Internal Revenue Service
When are taxes due
April 15th
How long is a standard loan repayment term
10 years
What's the difference between comprehensive and collision coverage
Comprehensive - Covers the physical damage to your car, ex. if a rock hits it and dents it, paint scratches
Collision - Covers damage to your car when you hit something, whether another vehicle was involved or not
when a good or service is received in exchange for a promise to pay a definite sum of money at a future date
Credit
Inspection of financial earnings
Audit
What is a 1040 form
A form used to file annual taxes
What age range has the highest student loan debt
25-49
If someone gets into an accident in your car whose responsibility is it?
The owner of the car, the owner is responsible for all the damage, but the person who drove is responsible for any criminal matters - if someone dies
Person or Organization that provides the loan. Bank, Credit card company etc.
Lender
What is the FICA
Federal Insurance Contributions Act
What is a 1099 form
A form for individuals and business payments
A period during which repayment of the principal and interest of your loan is temporarily delayed
Deferment
What are the 3 magic numbers
Per Person/Per Accident/Property
ability and willingness to pay money back
creditworthiness
Tax levied on some goods produced and or sold within the country
Excise
What is a 1098 Form
A form for mortgage interest
May be able to stop making payments or reduce monthly payments for up to 12 months - interest continues to accrue
Forbearance
what's the difference between No fault and at fault (Michigan vs Ohio)
In Michigan, it doesn't matter who caused the accident, you still have to run in through your own insurance, and vice versa
In Ohio, whoever is at fault has to run it through their insurance
Closed ended Credit
The borrower must repay in a specified number of payments.
What is a tax bracket
Range of incomes taxed at given rates
What is the difference between a W-2 and a W-4
W-4 is for the employers - instructions an employer uses to withhold taxes
W-2 is for the employees - a report of the taxes withheld during the year
what's the downside of consolidating student loans
Locked interest rates
What is liability coverage and why is it important
Pay for what you are financially responsible for after an accident. Whether it is an injury to another driver or passenger or the property damage caused by the accident. Liability coverages pay these types of costs up to the policy’s limits.
Medical bills are expensive, and suing someone for the money can get expensive as well
Whats the equation to find out your monthly payment for a credit card
(amount of $ spent) x 0.025 = monthly payment