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