Chapter 4 and 5 finance McCarthy

The stuff he gave 3rd period

What is tax planning ? 

Seeking a legal ways to reduce,eliminate, or defer income taxes 

What is progressive income tax ?

System where tax rate increase as the taxable income increases

What is the opposite of progressive tax ?

Regressive

The United States uses what kind of tax ?

Progressive income tax

What is marginal rate tax ?

The rate at which your last dollar income is taxed

What is regressive tax

One that demands decreasing porportion of one’s income as income increases

Why is gross income ?

Portion of your total income that is reportable on your tax form after taking exclusions

What is adjusted gross income

The result after subtracting from gross income

1040

Form to file for the apropriate tax year

1040x

Form used to amend returns for any of the previous three years

What is April 15th?

Tax day for all the United states citizens 

When should you plan our your taxes 

Way before April 15th 

What is tax evasion

The illegal and intentional failure to pay or underpay taxes ( will go to jail for it )

What is a 401k ? 

Employer sponsored retirement plans that allows employees to invest in a portion of their pay check before being pretaxed 

What is coverdell education savings account ?

Trust or custodial account used to save for a child’s qualified education

What is section 529 program

Taxed advantages savings and investment account for education expenses established by the states or other entities

What is minimum balance account

requires that your balance never drops below a certain minimum or fee will be assessed 

What is average balance account

Requires that your average balance for the month be above a certain amount or fee will be assessed

What is Russel 2000

2000 smallest stocks by market cap in the Russel 3000

What is the Russel 3000

Largest stock by market cap in the United States

should you take advantage of employer match ? 

Always take advantage ( 100 percent tax return) 

Can different parts of the government tax each other ? 

NO 

How much money does the FDIC hold in the account up to

$250,000

Wider the base the higher in 

Space