Unit 11

why are taxes important in macroeconomics?

part of a country’s fiscal policy

why are taxes important in microeconomics?

effects personal decisions of individuals and businesses

when do you pay taxes with a traditional IRA?

when you withdraw money from the account

when do you pay taxes with a ROTH IRA?

when it comes out of your paycheck, before depositing

why are mutual funds safer than regular stock investments?

money is invested over several stocks instead of one

income from interest savings or bonds, taxed like regular income when you receive it

interest income and how it is taxed

explain short-term capital gains taxes

an asset is sold less than a year after purchase and is taxed like regular income

explain long-term capital gains taxes

an asset is sold more than a year after purchase, taxed at a lower rate

what happens if there is a capital loss on an investment?

it can be written off as a tax deduction for up to $3,000 per year

what happens if you sell one type of cryptopcurreny for another and make a profit?

it is taxed

what is cryptocurrency considered by the IRS?

property

what is included in a stock report?

company’s equity, contract, changes in management, should you buy the stock and what it is worth

what is a stock ticker?

price of the stock and its movement (up or down)

what are the three parts of financial planning

knowing all sources of income, having goals, making a budget

a person’s money personality

spending behavior

how long should an emergency fund cover bills for?

6-9 months

ability to accept losing money as a result of a financial decision

risk tolerance

stock prices go up

bull market

stock prices go down

bear market

what is another form of philanthropy besides giving money?

volunteering

four types of places you can volunteer

community or recreation center, community gardens, food banks, mentor programs

nonprofits that have been founded with money donated by an individual, individuals, or businesses

philanthropic foundations

make grants of money to other foundations, nonprofit organizations, volunteer service organizations, and charities to help them carry out their work

what is done with money received by philanthropic foundations

provides a platform for individuals, business, and charities to get donations

GoFundMe

specifically for public-school classrooms to get donations

DonorsChoose

two purposes, provides platform for people and families facing health issues to share information about their situations, also provides a way for them to reach all those who need to know at one time to get donations

CaringBridge

amount a person can receive from a single person or married couple and not be taxed?

$16,000 and $32,000