Consumer Education Chapter 3
income tax
percent of a person's income
philanthropy
the act of giving away money, goods, services or time to support a cause
false
you do not have to pay income taxes if you earn less than $5 per hour
tax deductions
amounts deducted from your adjusted gross income
estate tax
collected when property is passed on
service-learning
combines service to the community with classroom studies
social security
disability, retirement, life in
share save spend system
dividing your funds into 3 categories based on your own personal value system
share
doing something important with your money in a very personal way
true
financial planning takes a lot of time and effort to do correctly
1040EZ
if you taxable income is less than 1 million, you don't claim any dependents and you file as single or are married filing jointly, then you may be able to file for 1040EZ
false
it is best not to involve others in your financial planning, which is a private, personal matter
spend
less emphasis of everyday wants
steps in creating a financial plan
look at current situation, identify and prioritize your goals, develop long term plan, organize your record, set up budget, keep it simple
1099
miscellaneous income
income
money earned for work allowances, gifts or investments
taxes
money people pay to their local, state and federal govts. to fund programs
with holding
money taken out to pay taxes, soc. sec, unemployment
false
most donors to charity are very wealthy
1040 form
one of the official documents that US taxpayers can file their annual income tax return
over draft fee
penalty for having a negative balance in your account
save
putting money away for short medium and long term goals
altruism
selfless concern for the welfare of others
W-2
shows the total amount of money withheld form your paycheck throughout the year
W-4 form
tells your employer what to withhold for the correct federal income tax from your pay
property tax
tax on the land people own
sales tax
tax paid when you make a purchase
expenses
things paid for with your money
false
to file your income tax return, you are required to get help from a tax preparation
adjusted gross income
total income minus certain adjustments
true
volunteering your time is just as important as sharing your money
true
when developing a financial plan, you have to consider your current financial situation-- even if you plan to change everything
