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22 Cards in this Set
- Front
- Back
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Estate Tax |
A tax imposed on the value of a person's property at the time of death. |
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Inheritance Tax |
A tax levied b on the value of property bequeathed by a deseased person. |
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Taxable Income |
The net amount of income after allowed deductions on which income tax is computed. |
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Earned Income |
Money received for a personal effort, such as wages, salary, commision, fees, tips, or bonuses. |
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Invested Income |
Money received in te form of dividends, interest or rent from investments; also called portfolio income. |
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Passive Income |
Income resulting from business activities in which you do not actively participate. |
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Exclusion |
An amount not included in grow income. |
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Tax-exempt Income |
Income that will be taxed at a later date. |
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Tax-deferred Income |
Income that will be taxed at a later date. |
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Adjusted Gross Income |
Gross I come reduced by certain adjustments, such as contributions to an individual retirement account and alimony payments. |
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Tax Shelter |
An investment that provides immediate tax benefits and a reasonable expectation of a future financial return. |
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Tax Deduction |
An amount subtracted from adjusted gross income to arrive at taxable income. |
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Standard Deduction |
A set amount on which no taxes are paid. |
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Itemized Deductions |
Expenses that can be deducted from adjusted gross income, such as medical expenses, real estate property taxes, home mortgage interest, charities let contrivutions, casualty losses, and certain work related expenses. |
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Exemption |
A deduction from adjusted gross income for yourself, your spouse, and qualified dependents. |
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Marina Tax Rate |
The rate used to calculate tax on the last (and next) dollar of taxable income. |
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Average Tax Rate |
Total tax due divided by taxable income. |
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Tax Credit |
An amount subtracted directly from the amount of taxes owed. |
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Tax Audit |
A detailed examination of your tax return by the internal revenue service. |
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Tax Avoidance |
The use of legitimate methods to reduce one's taxes. |
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Tax Evasion |
The use of illegal actions to reduce one's taxes. |
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Capital Gains |
Profits from the sale of a capital asset such as stocks, bonds, or real estate. |
