There are a few expenses in life that you simply can’t avoid—taxes and insurance top that list. It is important that you understand the basics.
Taxes
Individuals and most businesses are required to pay a portion of their income to the federal government, and to most state and some local governments. Many factors influence how personal and business income is taxed. Here are some resources that are available to help you get a better handle on the taxation process:
Insurance
This is a tool to help individuals manage risk in the event of an unexpected accident or injury and is a critical component to a sound financial plan. To obtain insurance, you must pay insurance premiums. In Maine, all drivers are required to carry a minimum amount of car insurance coverage. Many colleges require students to have health insurance and automatically charge for insurance. If you have health insurance (through your parents, for example), be sure to waive the school’s health insurance. There are a number of free resources available to help you learn more:
- Healthcare.gov
- enroll207.com
- Maine.gov/pfr/insurance/consumer
- In Maine, the CA$H Coalition provides free IRS-certified tax preparation for households and individuals who meet certain income requirements. Visit cashmaine.org for more information, or to locate a CA$H site near you.
