| A | B |
|---|
| Tax Liability | The total amount of taxes you owe. |
| Excise Tax | A tax collected by federal and state governments on specific goods and services. |
| Estate Tax | Tax collected on the value of a person's property at the time of his or her death. |
| Inheritance Tax | A tax collected on the property left by a person in his or her will. |
| Gift Tax | A tax collected on money or property valued at more than $10,000, given by one person to another in a single year. |
| Withhold | Take out |
| Income Tax Return | A form on which you report how much money you received from working and other sources and the exact taxes, if any, that you owe. |
| Earned Income | The money you receive for working. |
| Interest Income | The interest you receive from banks, credit unions, and savings and loan associations. |
| Dividend Income | Includes the cash dividends that you receive from investments. |
| Exclusion | An amount of income that is not included in your gross income. |
| Adjusted Gross Income | Your gross income after certain reductions have been made. |
| Taxable Income | Your adjusted gross income less any allowable tax deductions and exemptions. |
| Tax Deduction | An expense that you are allowed to subtract from your adjusted gross income to arrive at your taxable income. |
| Standard Deduction | An amount set by the IRS on which no taxes are paid. |
| Itemized Deduction | A specific expense, such as mortage interest, that you deduct from your adjusted gross income. |
| Exemption | A deduction from your adjusted gross income for yourself, your spouse, and qualified dependents. |
| Tax Credit | An amount subtracted directly from the amount of taxes you owe. |
| Allowance | An adjustment to the tax withheld from your paycheck, based on your marital status and whether you are supporting other people with your money. |
| Tax Audit | A detailed examination of your tax return by the IRS. |
