Vocabulary:

Chapter 7:
progressive rates, tax rate schedules, tax bracket, tax tables, marriage penalty, marriage benefit,
preferential tax rate, preferentially taxed income, 3.8% Medicare contribution tax, net investment
income, Employment taxes, FICA, Social Security tax, Medicare tax, Additional Medicare Tax on
Wages, Additional Medicare Tax on Unearned Income Self-employment taxes, net earnings from self-
employment, shifting income, assigning income, kiddie tax
nonrefundable credit, refundable credit, dollar for dollar, Reduce tax liability dollar for dollar
Child tax credit, qualifying child , partially refundable
Earned Income Tax Credit, Foreign tax Credit
Tuition and fees deduction, work-related educational expense deduction
Child and Dependent Care Credit, Qualifying person, qualifying expenditures, credit percentage lesser-
earning spouse, full-time students
American Opportunity Credit
Lifetime Learning Credit
Prepayments, estimated tax payments, quarterly payments, underpayment penalty, safe harbor rules,
underpayment penalties
Chapter 5: Vocabulary
All-inclusive definition of income, economic benefit, realization principle, wherewithal to pay,
recognized income, exclusions deferrals
Form of receipt, money, property, services, Return of capital, return of investment, unrecovered
investment, tax basis, recovery of amounts previously deducted, tax benefit rule
Assigning income, shifting income, fruit and tree doctrine, community property, separate property,
common-law, state, co-owners, jointly owned, kiddie tax
Earned income, business income, unearned income, qualified dividend, annuity
Annuity , purchased annuity, fixed annuity, life annuity, return of capital, original investment,
expected value of annuity, expected return multiple, single life annuity, joint-life annuity
Amount realized, realized gain, realized loss, recognized gain, recognized loss, disallowed loss,
excluded gain, deferred gain, deferred loss, adjusted basis
Alimony, Divorce decree, property divisions, child support, assign income, anti-front-loading rules ,
recapture
Prize, Award, gambling winnings, gambling losses