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Adjusted Gross Income: A taxpayer's income, including wages, salaries, interest, rents, and dividends, adjusted for certain deductions.

Assets: Any property included in the estate whether real or personal, such as cash, equipment, real estate, insurance, trusts, or business interests.

Decedent: The person to whom the estate belongs and whose death initiates the transfer.

Deduction: Allowance from adjusted gross income taken for qualified expenses.

Estate: The collection of assets minus any liabilities, such as mortgages or other debt, which is transferred at death.

Estate Tax: The tax levied on the right to transfer the estate at death.

Exemption Amount: The amount of the taxable estate allowed to be excluded from the estate tax.

Gift Tax: The tax levied on the transfer of property from one person to another prior to the transferor's death.

Social Security Tax: Tax withheld from wages of an employee to pay for old-age, survivors, and disability benefits, as well as Medicare hospital insurance. An employer withholds half of the tax from wages paid and matches the other half. In the case of self-employment, the full amount is owed by the self-employed individual.

Tax Credit: A credit against taxes owed, taken after tax liability is computed. Credits may be either refundable or nonrefundable; a refundable credit may return money to a taxpayer in excess of their tax liability.

Taxable Estate: The amount of the estate that is subject to the estate tax. Usually, this is the estate, adjusted for other factors, such as a family business interest or special use valuation.

Last updated: Tuesday, November 12, 2013

For more information contact: James Williamson and Ron Durst

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