FiCEP Study Guide Final m m m
1. operating costs: A tax is defined as a contribution that supports the
m m m m m m m m m m m m
of a government.
m m
2. progressive: A m m
tax requires a taxpayer to pay more tax as their income increases. (Federal an
m m m m m m m m m m m m m
d state income taxes are examples)
m m m m m
3. regressive: A m mm m m tax charges the same percentage of the cost of a good or ser
m m m m m m m m m m m m
vice, no matter what the taxpayer earns. (Sales tax, gas taxes, and liquor taxes are
m m m m m m m m m m m m m m
m examples)
4. fees or surcharges: Sometimes taxes are called
m m m m m m m .
5. fee: A m m could include the cost of a driver's license or a hunting license.
m m m m m m m m m m m
6. surcharge: A m m could be a gasoline tax, tobacco tax, or liquor tax.
m m m m m m m m m
7. tax obligations: Taking care of
m m m m m
is as important for a member's financial well-
m m m m m m m
1m/m53
,being as it is to pay their bills on time.
m m m m m m m m m
8. correspondence: Any m m
from the IRS should be reviewed and dealt with as soon as possible.
m m m m m m m m m m m m
9. taxpayer advocate service.: If you have not been able to resolve a problem with
m m m m m m m m m m m m m m
the IRS, seek assistance from the
m m m m m m .
10. tax professional: Complex tax situations might require members to hire a
m m m m m m m m m m
.
11. 70: m % of taxpayers may be eligible for free tax filing assistance.
m m m m m m m m m m
12. filing status: If members get a large refund, they might want to change their
m m m m m m m m m m m m m
if the money is needed in their monthly budget.
m m m m m m m m
13. costly: Caution members that using refund anticipation loans can be a
m m m m m m m m m m m
m way to get instant access to their refund.
m m m m m m m
14. pay down debt: The first choice for using a tax refund is to
m m m m m m m m m m m m m .
15. self-
employment quarterly taxes: Other tax authorities that members must pay atte
m m m m m m m m m m
ntion to are state income tax, property tax, and
m m m m m m m m m .
2m/m53
,16. taxable income: Examples of
m m m m
are wages, salaries and tips, interest income, alimony, business income, ca
m m m m m m m m m m
pital gains, pensions and annuities, other forms of income, and distributions fro
m m m m m m m m m m m
m a traditional IRA.
m m m
17. non-taxable income: Examples of m m m m are child support payments, life in-
m m m m m
m surance benefits paid to a beneficiary, gifts and inheritances from parents, social
m m m m m m m m m m m
m security benefits, benefits from welfare, and qualified distributions from roth IRAs.
m m m m m m m m m m
18. filing status: m m can make a difference in the taxes paid.
m m m m m m m
19. filing status: Examples of
m m m m
are single, married filing jointly, married filing separately, head of household, a
m m m m m m m m m m m
nd qualified widow or widower with dependent children.
m m m m m m m
20. 401(k) plan: Saving for retirement can also save taxes by making contributions
m m m m m m m m m m m m
to a m m .
3m/m53
, 21. traditional IRA: If a person is in a 25% income bracket, they could save 25% of
m m m m m m m m m m m m m m m m
the money they deposit into a
m m m m m m .
22. insurance: Financial counseling clients can manage some of the risks in life by
m m m m m m m m m m m m m
having the right types and amounts of
m m m m m m m .
23. insurable interest: An m m m
in a car you financed at the credit union could be held by both you and the credi
m m m m m m m m m m m m m m m m m
t union. m
24. risks: You can make a better choice about insurance coverage if you evaluate
m m m m m m m m m m m m m
your m .
25. umbrella liability policy: An m m m m
can give you protection if someone sues you for an accident on your property
m m m m m m m m m m m m m
.
26. deductibles and policy limits: m m m m can help manage the costs of insurance
m m m m m m
27. cobra: m
provides the right for an employee that is terminated or resigns to keep their me
m m m m m m m m m m m m m m
4m/m53
1. operating costs: A tax is defined as a contribution that supports the
m m m m m m m m m m m m
of a government.
m m
2. progressive: A m m
tax requires a taxpayer to pay more tax as their income increases. (Federal an
m m m m m m m m m m m m m
d state income taxes are examples)
m m m m m
3. regressive: A m mm m m tax charges the same percentage of the cost of a good or ser
m m m m m m m m m m m m
vice, no matter what the taxpayer earns. (Sales tax, gas taxes, and liquor taxes are
m m m m m m m m m m m m m m
m examples)
4. fees or surcharges: Sometimes taxes are called
m m m m m m m .
5. fee: A m m could include the cost of a driver's license or a hunting license.
m m m m m m m m m m m
6. surcharge: A m m could be a gasoline tax, tobacco tax, or liquor tax.
m m m m m m m m m
7. tax obligations: Taking care of
m m m m m
is as important for a member's financial well-
m m m m m m m
1m/m53
,being as it is to pay their bills on time.
m m m m m m m m m
8. correspondence: Any m m
from the IRS should be reviewed and dealt with as soon as possible.
m m m m m m m m m m m m
9. taxpayer advocate service.: If you have not been able to resolve a problem with
m m m m m m m m m m m m m m
the IRS, seek assistance from the
m m m m m m .
10. tax professional: Complex tax situations might require members to hire a
m m m m m m m m m m
.
11. 70: m % of taxpayers may be eligible for free tax filing assistance.
m m m m m m m m m m
12. filing status: If members get a large refund, they might want to change their
m m m m m m m m m m m m m
if the money is needed in their monthly budget.
m m m m m m m m
13. costly: Caution members that using refund anticipation loans can be a
m m m m m m m m m m m
m way to get instant access to their refund.
m m m m m m m
14. pay down debt: The first choice for using a tax refund is to
m m m m m m m m m m m m m .
15. self-
employment quarterly taxes: Other tax authorities that members must pay atte
m m m m m m m m m m
ntion to are state income tax, property tax, and
m m m m m m m m m .
2m/m53
,16. taxable income: Examples of
m m m m
are wages, salaries and tips, interest income, alimony, business income, ca
m m m m m m m m m m
pital gains, pensions and annuities, other forms of income, and distributions fro
m m m m m m m m m m m
m a traditional IRA.
m m m
17. non-taxable income: Examples of m m m m are child support payments, life in-
m m m m m
m surance benefits paid to a beneficiary, gifts and inheritances from parents, social
m m m m m m m m m m m
m security benefits, benefits from welfare, and qualified distributions from roth IRAs.
m m m m m m m m m m
18. filing status: m m can make a difference in the taxes paid.
m m m m m m m
19. filing status: Examples of
m m m m
are single, married filing jointly, married filing separately, head of household, a
m m m m m m m m m m m
nd qualified widow or widower with dependent children.
m m m m m m m
20. 401(k) plan: Saving for retirement can also save taxes by making contributions
m m m m m m m m m m m m
to a m m .
3m/m53
, 21. traditional IRA: If a person is in a 25% income bracket, they could save 25% of
m m m m m m m m m m m m m m m m
the money they deposit into a
m m m m m m .
22. insurance: Financial counseling clients can manage some of the risks in life by
m m m m m m m m m m m m m
having the right types and amounts of
m m m m m m m .
23. insurable interest: An m m m
in a car you financed at the credit union could be held by both you and the credi
m m m m m m m m m m m m m m m m m
t union. m
24. risks: You can make a better choice about insurance coverage if you evaluate
m m m m m m m m m m m m m
your m .
25. umbrella liability policy: An m m m m
can give you protection if someone sues you for an accident on your property
m m m m m m m m m m m m m
.
26. deductibles and policy limits: m m m m can help manage the costs of insurance
m m m m m m
27. cobra: m
provides the right for an employee that is terminated or resigns to keep their me
m m m m m m m m m m m m m m
4m/m53
