Taxes and Insurance Vocab Review

Auto coverage that protects against costs to repair your own car after a crash.

• liability coverage

• no fault coverage

• comprehensive coverage

• collision coverage

Taxes paid by employees to federal and state government thru deductions from paycheck.

• payroll tax

• exemption

• income tax

• standard deduction

Amount you pay towards your losses before insurance coverage kicks in.

• copay

• deductible

• allowance

• deduction

Amount of income used to calculate income tax due.

• taxable income

• copay

• payroll tax

• allowances

Auto insurance that protects against cost to others if you are at fault for an accident.

• comprehensive coverage

• liability coverage

• collision coverage

• no fault coverage

Standard IRS form that individuals use to file taxes.

• W2

• 1040

• W4

• W9

The actual rate you pay on your taxes as a percentage of overall income.

• income tax

• payroll tax

• exemption

• effective tax rate

Income earned through interest on savings accounts, bonds, CDs, etc.

• passive income

• active income

• interest income

• discretionary income

Federal and state taxes all employers must pay based on percentages of salary towards Social Security and Medicare.

• payroll tax

• taxable income

• income tax

• interest income

Someone you financially support on a tax return.

• exemption

• dependent

• allowance

• freeloader