MoneyU Glossary of Terms
Someone that restructures your current debt with your existing creditors. You don't loan money from them (or anyone else) and you still owe all of the same creditors. However, the Debt Manager can help change the terms and conditions that apply to your current debt. The Debt Manager then consolidates your debts into one monthly payment. You pay the Debt Manager and the Debt Manager sends your payments to your creditors for you each month.
Debt Repayment Plan
A plan you create to most efficiently repay all of your debts.
Your debt-to-income ratio compares the amount of your debt (excluding your mortgage or rent payment) to your income.
Take Home Pay
The amount of money you earn after all deductions.
Individual U.S. Income tax return; generally required to be filed by April 15 to report income for the previous year. Form 1040 is the long form, which must be used by taxpayers who itemize deductions or have high incomes. Form 1040A is limited to those who have less than $50,000 of taxable income and limited income sources and do not itemize deductions. Form 1040EZ is the easiest to complete, but may be used only by single people claiming only themselves as a personal exemption, with income only from wages, salaries, and tips, and no more than $400 of interest income.
The 1040 form has several "schedules" with which individuals can declare their deductions, adjustments, and other sources of income. The 1040 form has two pages: the first page figures the income and also any adjustments to income; the second page of the 1040 form records taxes due, deductions, credits, and payments already made toward one's tax liability. A 1040 form can be amended by filling out a 1040X form.
A 401K plan is established by your employer as a way for you to save money for your retirement. It's generally funded with money from your paycheck (before it's taxed by the government) and sometimes, from matching contributions from your employer. This total amount is deposited into a mutual fund. That money, plus any future financial growth from investing, isn't taxed until you take the money out.
Pattern of activities and positions involved in an individualÔÇÖs lifetime of work to which the person has made a long-term commitment.
Federal Insurance Contributions Act (FICA)
The FICA tax is what you're giving to Social Security, the national program that provides money for retired workers, disabled individuals the unemployed, and others who collect government benefits.
Your gross pay is the amount of money you are paid before any of it is taken from your paycheck for taxes and deductions.
An annual tax that the Federal government, most states, and some local governments charge on all the money a person or company earns in an entire year.