| A | B |
|---|
| tax liability | total amount of taxes you owe |
| excise tax | tax collected by federal and state govt. on gas, travel, etc. |
| estate tax | federal tax collected on value of person's property |
| inheritance tax | state tax collected on property left by person in his or her will |
| gift tax | tax collected on money or property valued at more than $11,000 |
| withhold | money withheld from your paycheck for Social Security and income tax |
| income tax return | form on which you report how much money you received from working and other sources |
| earned income | money you receive for working |
| interest income | interest you receive from banks and credit unions |
| dividend income | cash dividends that you receive from investments |
| exclusion | amount of income that is not included in your gross income |
| adjusted gross income | gross income after certain deductions have been made |
| taxable income | adjusted gross income less allowable tax deductions and exemptions |
| tax deduction | expense you are allowed to subtract from your adjusted gross income |
| standard deduction | amount set by IRS on which no taxes are paid |
| itemized deduction | a specific expense you deduct from your adjusted gross income |
| exemption | deduction from your adjusted gross income for yourself, your spouse, and qualified dependent |
| tax credit | amount subtracted directly from the amount of taxes you owe |
| allowance | an adjustment to the tax withheld form your paycheck |
| tax audit | detailed examination of your tax return by the IRS |
