Retirement
Living without having to work to meet financial obligations.
Retirement
A tax imposed on the transfer of property and assets from a deceased person.
inheritance tax
To leave or give property by will.
bequeath
A social insurance program funded through dedicated payroll taxes called the Federal Insurance Contributions Act (FICA).
Social Security
Income after all deductions and exemptions have been subtracted. Using a tax table, taxes are figured based on the taxable income.
Taxable income
A company retirement plan, such as a pension plan, in which a retired employee receives a specific amount based on salary history and years of service, and in which the employer bears the investment risk.
Defined Benefit Plan
Tax on the profit made by selling an asset that has increased in value, such as stocks or property.
capital gains tax
All of the property, assets, and debts left by a deceased person.
estate
Income that is available after all necessities (food, shelter, etc.) have been paid for.
discretionary income
Amounts subtracted directly from the taxes due, not from income as deductions are. There are many types of tax credits, including the Earned Income Tax Credit and the Child Tax Credit.
Tax credits
A tax-deferred retirement plan account that provides some tax advantages for retirement savings in the United States.
Individual Retirement Account (IRA)
An item that is subtracted from gross income on a tax return. There are many deductions, the most common of which include business expenses, charitable donations, medical expenses and property taxes, interest on mortgages or equity lines of credit, and tax advice.
Deduction
The legal process of settling the estate of a deceased person, resolving all claims and distributing the decedent’s property. I
probate
The total income of an individual or couple filing jointly or separately, including all wages, rental income, and interest on investments.
gross income
The divisions at which tax rates change in a progressive tax system. Income past a certain point will be taxed at a higher rate.
tax brackets
A type of employer-sponsored defined contribution retirement plan under section 401(k) of the Internal Revenue Code. It allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal.
401(k)
A name given to various taxes that arise on the death of an individual, also called inheritance tax or death duty.
estate tax
A legal arrangement in which one person holds title to money or property, subject to an obligation to keep or use the property for the benefit of another.
trust
Income after all deductions and exemptions have been subtracted. Using a tax table, taxes are figured based on the taxable income.
taxable income
A tax paid by owners of property, based on the estimate of the property’s value.
property tax
A company retirement plan, such as a 401(k) plan or 403(b) plan, in which the employee elects to defer some amount of his or her salary into the plan, and he or she bears the investment risk.
Defined Contribution Plan
A dollar-value threshold over which estate taxes are required.
exemption amount
A document by which a person regulates the rights of others over his or her property or family after death.
will
A form of taxation where people who earn more are charged a higher percentage of their income than people with lower incomes.
progressive taxes
A tax imposed by the federal government on any money earned during a fiscal year.
Income tax