Taxes and insurance practice test
George and kelly have a renters policy with $1000 per person no-fault medical payments coverage. Following a party at their home, brian one of their guests fell on the stairs and broke his ankle. How much of the $1850 medical bills will george and kelly's renters policy pay?
1,000
You fill out a _______ in order to file your taxes.
1040
Dana garcia has a renters policy with a maximum limit for personal property of $30,000. When her apartment suffered fire damage, $15,000 of her personal property was destroyed. The insurance would pay no more than ---- in this case
15,000
Long term capital gains are taxed at a minimum rate of ________ percent
20
As a result of the health care reform patient protection and affordable healthcare act a child may stay on a parents health care plan until age
26
Craig and jan johnson have a health insurance policy with a $750 deductible and 35 percent coinsurance. Craig recently sustained $7250 in medical expenses. How much will craig and jan pay?
3,025
Each personal exemption is worth
4,050
Sally mckrachen is a single young professional with a gross income of $51,000. What is sally's taxable income?
41,500
What is the standard deduction for a single individual?
6,350
Which of the following best describes a preexisting condition
a previously diagnosed medical condition
--- coverages can be included in an automobile insurance policy
all of these
Adjustments to gross income
all of these
As a result of the health care reform patient protection and affordable healthcare act which of the following aspects of health care plans will no longer be allowed?
all of these
when illness or injuries strike which of these issues may affect your finances?
all of these
--- insurance is required in most states
automobile
The proportion of total income paid in income taxes
average tax rate
One can lower insurance premium by doing all of the following except
avoiding coinsurance
The maximum possible loss that can occur helps one
choose insurance policy limits
Traditional health insurance plans typically have --- and --- requirements that result in out of pocket costs for the insured.
deductibles, coinsurance
Both alimony and child support received are considered part of gross income for income tax purposes
false
The money you receive back because you have overpaid your taxes is called a tax return
false
The official name of the 2010 health insurance reform law is obamacare
false
You cannot be claimed as a dependent after you turn 18.
false
Young adults may stay on a parent's health care plans until age 22 or graduating from college whichever comes first.
false
The financial product used for transferring and reducing risk by having a large number of people share in the financial losses suffered by members of the group is called
insurance
Sal is a 27 year old single taxpayer in the 28 percent marginal tax bracket. Sal should take the __ for the additional tax savings of ______
itemized deduction; 196
The types of insurance you carry but which covers losses suffered by others is called --- insurance
liability
Drawbacks of an hmo include
limited choice of physicians
The loss of property itself extra expenses that may arise because the property is unusable for a period of time, and loss of income if the property was used in the insured's work are all types of ----- losses.
property
After a halloween night of madness on sixth street mark and two friends and took marks four wheel driving bronco for a midnight tour of campus. The next morning campus police found mark and his bronco in the middle of the campus fountain. Of various sections of mark's auto insurance, damage to the fountain is covered by marks ---- coverage, and damage to the bronco is covered by his ---- coverage
property damage liability, collison
--- is not covered under tour automobile bodily injury and property damage liability coverage (section a)
property damage to your vehicle
When you calculate your taxes, if the balance owed to the IRS is less than 0, you will receive a ________
refund
Which of the following types of subtractions cannot be taken by a taxpayer if he or she itemizes deductions?
standard deduction
Which of the following statements is not true about insurance deductibles?
the higher the deductible, the higher the insurance premium
A long term capital gain (or loss) occurs when the asset is held for over one year
true
A progressive tax is one that demands a higher percentage of a person's income as income increases
true
An hsa is a tax deductible savings account into which individuals and/or their employers can deposit tax sheltered funds for use to pay medical bills including the deductibles and other out of pocket costs required by a high deductible plan,
true
An insurance policy is a contract between the person buyin insurance and the insurance company.
true
An insurance policy will pay the actual loss suffered not to exceed to policy limits
true
Buying an insurance policy with a deductible is one way to assume risks that are affordable
true
Cash contributions to qualified organizations, such as churches, schools, and other qualifying charities, require a receipt for a contribution of $250 or more.
true
Charitable contributions of goods and property to a qualifying organization should be valued at fair market value when used as an itemized deduction
true
Combining a health savings account with a high deductible health care plan is a way to save money on the cost of a health care plan
true
Deductibles are requirements that the insured pay an initial portion of any loss
true
Insurance covering the costs of major illnesses and injury would typically be considered necessary insurance
true
Personal income taxes are paid only on your taxable income
true
Policy limits are the maximum dollar amounts that will be paid under the policy
true
Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions.
true
Tax planning includes eliminating, reducing, or deferring income taxes to be paid
true
The fee charged for insurance protection is called a premium.
true
The internal revenue service is the agency that collects federal income taxes
true
Traditional health insurance provides protection against financial loss resulting from the perils of illness and injury.
true
When shopping for insurance, your goal should be to 'buy' what you need and not be 'sold' more or less coverage.
true
This form indicates how much money you made and how much of your taxes were withheld by your employer for the previous year.
w-2
Earned income is reported to the recipient on a
w-2 form
When you fill out a ___, your employer withholds taxes out of your paycheck.
w-4
When you fill out a _____, your employer doesn't withhold taxes out of your paycheck
w-9