Friday, 7 August 2020, 8:21 PM
Site: MoneyU
Course: MoneyU (MoneyU)
Glossary: MoneyU Glossary of Terms
EARNING

Luxury Tax

A luxury tax is placed on "luxury items" that aren't considered essential for living. These include high-priced items like jewelry or expensive cars. So bread and milk at your grocery stores won't be taxed because they're considered "essentials".

Non-Taxable Income

Money you earn that is not taxed by the federal, state, or local government. This money can come from several sources including disability pay or legal settlements due to personal injury.

Premiums

Monthly fees to a health insurance firm that provides you with coverage.

Property Tax

What you pay on land you own. That applies to whether it's the house you live in or property you own with nothing on it but dirt. The tax is usually charged by your local government, which bases your property tax on what it thinks your property is worth if you decided to sell it. Property taxes are mainly used to repair roads, build schools, remove snow and perform other services in your town.

Sales Tax

What your state or local government charges you when you buy a good or service. It's typically a percentage of the cost you pay. While an income tax charges the money you earn, the sales tax charges money you've spent. States that charge sales tax typically charge 4 to 7 percent of the item's cost.

State Unemployment and Disability (SUI/SDI)

Certain states require employees to contribute to this program, which pays benefits to people who are unemployed or currently unable to perform their job.

Take Home Pay

The amount of money you earn after all deductions.

Taxable Income

Any money you earn or receive - such as salary, bonuses or interest from investments - that can be taxed by the Federal, state, or local government.

W-2 Form

A form sent to you by your employer that lists the total amount of money you earned over the year, and the total amount of taxes taken out.
GOOD BANKING

Account Balance

The amount of money in your account.