Tax
This U.S. agency is charged with the responsibility for collecting federal income taxes based on legal provisions.
What is the Internal Revenue Service (IRS)?
This financial statement consists of your assets, liabilities, and your net worth.
What is the balance sheet?
Protections from financial losses suffered when you are held liable for others' losses.
What is liability insurance?
The maximum amount your credit issuer established for you to borrow on a credit card or line of credit?
What is a credit limit?
The fraudulent acquisition and use of a person's private identifying information, usually for financial gain.
What is identity theft?
Together, the Social Security Tax and the Medicare Tax are also referred to as this.
What is the FICA tax?
These expenses are usually paid in the same amount during each time period, and they are typically inflexible and often contractual.
What are fixed expenses?
The monthly or annual cost paid for insurance.
What is a premium?
This is something pledged as security for repayment of a loan to be forfeited in the event of a default?
What is collateral?
An indication of a person's creditworthiness or how likely the individual will be able to repay any credit extended in a timely manner. The higher the number, the better.
What is a credit score?
This type of tax reduction reduces your tax liability on a dollar-for-dollar basis, which is a direct subtraction from your tax liability.
What is a tax credit?
This is the money left over after necessities such as housing and food are paid for.
What are discretionary funds or controllable expenses?
A requirement in a health care insurance policy that makes you pay a certain dollar amount each time you have a specific covered expense item, such as to a doctor's office and for prescription drugs.
What is a copay?
The very high-interest rate charged by the credit card issuer when a borrower violates the card's terms and conditions.
What is a penalty rate (default rate)?
When a financial institution takes back an object that was either used as collateral or rented or leased for non-payment of a loan.
What is repossession?
This involves deliberately and willfully hiding income, falsely claiming deductions, or otherwise cheating the government out of taxes owed.
This ratio answers the question: Is my total debt burden too high?
What is the Debt-to Income Ratio?
Under this government program, eligible workers can receive some income if their disabilities are total, meaning that they cannot work at any job.
What is Social Security Disability Income Insurance?
When a person accepts the legal obligation to make payment on another person's debt should that person default.
What is a cosigner?
Information compiled by a credit bureau from merchants, utility companies, banks, court records, and creditors about your payment history.
What is a credit report?
FSA (flexible spending account) accounts are subject to this, which means that any unspent dollars in the account at the end of the year are forfeited and not returned to the employee.
What is the "use-it-or-lose-it rule"?
The difference between the amount budgeted and the actual amount spent or received.
What is a budget variance?
A contract between an insured and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.
What is life insurance?
A loan where an interest rate on a loan fluctuates over time because it is tied to an underlying benchmark interest rate that changes periodically.
The most widely known credit scoring system was developed by Fair Isaac Corporation and used by 90-plus percent of companies when making lending decisions.
What is the FICO score?