Reflection Papoer - 765 Words

Reflection Paper FP/120 January 4, 2012 Caryn Callahan Reflection Paper This paper will discuss the objectives of week four. Team B’s discussion will include the characteristics and functions of different types of insurances, the importance of wills, and explain what taxable income is, and the steps an individual needs to take to file his or her federal tax return. Insurance The function of possessing insurance is to help cover a part of what a person has lost. It consists having a pool of large amounts of people that pays a certain amount each year. The amount that an individual pays is decided using many factors from age to location of the individual. There are many forms of insurance such as auto, life, and health†¦show more content†¦Each individual (beneficiaries) has a percentage of assets, (retirement funds, IRA’s and 401 k plans). Other family member may be given material possessions such as photos, sports memorabilia, and jewelry. If there is no other assets, such as land or homes to sell or divide, the will is in the simplest form and needs to be signed and dated in the presence of our lawyer and other spouse as applicable. A will can provide family members with a peace of mind knowing that their loved ones funeral, financial, and health care arrangements are settled. Other relatives will be spared of personal and emotional h ardships as the result. Income Tax Income taxes are calculated by taking an individual’s total income and subtracting any adjustments, deductions, or exemptions, which is called taxable income. If a person looks at the income tax table he or she can find their tentative tax total. By subtracting any tax credits or taxes already paid, gives the individual the number that will either be a refund amount or a total amount due. Looking at tax deductions and exemptions shows that gifts and home mortgage interest paid are both tax deductible, and unexpected doctor or dentist payments can be deducted along with any dependents claimed can reduce the amount of taxes owed. There are ways to save a penny or two concerning filing federal taxes. They may include looking into flexible spending accounts or retirement plans and