Banki
ng F
ollo
w
Up
Checking Accounts:Emily, Jocelyn, JarekSavings Accounts:Robert, Anastasia,
Greg
Money Markets & CD’sSarah, Jonah, Alex
What
are
the
diff
ere
nt
types
of
taxe
s?
Taxes on your Income• Federal Taxes• State and Local Taxes• FICA Taxes
Taxes on your Investment Gains• Capital Gains Taxes
Vid
eo
YouTube - Personal Inco
me Taxes - A Visual Expl
anation
Taxe
s on y
our
Inco
me
If you earn money you
owe certain taxes on
that money.
Money is withheld from
your paycheck and automatically sent to the
government for these
taxes.
You then file a tax return
by April 15 of the next
year to calculate your
taxes and see if you’ve
had enough withheld.
Taxe
s on y
our
inco
me
This applies to Federal and
State Taxes
It does not apply to FICA
Taxes
FICA Taxes are taxes for:• Social Security (6.2%)• Medicare (1.45%)
In P
lain
Englis
h
Income
Taxable Income
Deductions
Federal Tax
Antonio’s Salary: $43,000Interest Earned on CD: $300
Total Income: $43,300
Standard Deduction: $5,650Exemption Deduction: $3,650
Total Deductions:$9,300
Income – Deductions: $34,000
The first $8,375 is taxed at 10% $837From $8,375 to $34,000 is taxed at 15% $3,844
Federal Tax: $4,681
In P
lain
Englis
h
Federal Tax
Federal Tax: $4,681
Federal Tax WithheldFederal Tax Withheld:
$5,000
Refund or Amount DueAmount withheld – Federal Tax:
Refund of $319
What
is
insu
rance
?
Definition:
An agreement by
which a company provides a guarantee of
repayment for a specific
loss in return for a customer’s payment of
premium.
What
is
insu
rance
?
Basic Example:If you pay your monthly
premium for your car
insurance, when you get
in an accident your insurance company will
help fix your vehicle.
Diff
ere
nt
Types
of
Insu
rance
Health Insurance:If you get sick and need to
see a doctor, your health insurance will help you pay the cost.
Car Insurance:If you get in a car accident, your car insurance will help
fix your car.
Home Insurance:If someone breaks into your
house, your home insurance will help pay to replace the items that were stolen.
Diff
ere
nt
Types
of
Insu
rance Life Insurance:If you pass away, the
insurance company will pay money to your family.
Disability Insurance:If you become disabled and cannot work, the insurance company will pay money to
you every month to help you pay bills.
Why
is Insu
rance
Im
port
ant?
If you drive a car…You are required to have insurance.
If you own a home…You are required to have insurance.
If you ever get sick…Not having health insurance is
the # 1 cause of bankruptcy.
If you are married, have kids, or in debt…
Life Insurance can help replace the income that your family depends on, or help pay off debt that your loved ones would still have.
Car
Insu
rance
6 Components of Car
Insurance
1) Bodily Injury Liability
2) Property Damage Liability3) Medical Payments
4) Collision5) Comprehensive6) Un/Underinsured
Motorist