Life Insurance Answers

Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your family at least until the youngest is 22. Based on the given information, what is the best policy to buy? a.Whole life policy b.10-year term policy c.15-year term policy d.20-year term policy

Which of the following statements best describes the difference between sales tax and property tax? a.Sales tax is applied to items as they are purchased while property tax is applied to items already owned.b.Sales tax is applied repeatedly while property tax is paid only once for as long as you own the item.c.Sales tax can be applied to a new speed boat while property tax cannot.d.Sales tax is strictly meant for food and consumables while property tax is meant for non-food items.

You make $443 per week, and have claimed five exemptions. How much money will be withheld from you in a year? a. $2,392 b. $2,288 c. $2,756 d. $2,858 Please select the best answer from the choices provided

Which of the following is an example of a wealth tax?a.income taxb.excise taxc.estate taxd.sales tax

Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35 years, Christina’s annual salary averaged $22,040. She expects to receive some money each month from Social Security and plans to take the rest of the money she needs to pay the monthly bills from savings. Each month her bills total to about $1,375. Assuming her annual Social Security benefit will be 42% of her salary average, how much will she need to take from savings each month to help pay the bills?a.At least $771.40b.At least $603.60c.At least $629.71d.At least $1,722.08

You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income?a.$16,053b.$9,350c.$10,825d.$14,475

David’s salary totals $79,000 per year. He can expect to pay federal income tax at a rate of 23.60%. How much money will David pay in federal income taxes every year?a.$60,356b.$19,110c.$18,644d.$22,316

Nastasha has a gross income of $66,429. She can make adjustments of $14,490 for business losses, $3,584 for business expenses, and $4,813 for contributions to her retirement plan. What is Nastasha’s adjusted gross income?a.$109,971b.$22,887c.$72,522d.$43,542

For each of the following wages, determine the Medicare tax that would be withheld.i. $23,660ii. $89,000iii. $166,090a.i. $343.07ii. $1,290.50iii. $2,408.31b.i. $3,430.70ii. $12,905.00iii. $24,083.05c.i. $146.70ii. $551.80iii. $1,029.76d.i. $1,466.92ii. $5,518.00iii. $10,297.58

What is the difference between a tax credit and a tax deduction?a.A tax credit represents money owed to you, while a tax deduction represents money you owe.b.A tax credit reduces the amount of money you must pay, while a tax deduction reduces your taxable income.c.A tax credit is owed money that collects interest, while a tax deduction is money that you do not have to pay.d.A tax credit occurs if you underpaid during the year, and a tax deduction occurs if you overpaid.

One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such a decrease effect the benefits on a salary of $54,000? a.Benefit would decrease by $1,404 annually.b.Benefit would decrease by $7,020 annually.c.Benefit would decrease by $8,640 annually.d.Benefit would decrease by $15,660 annually.