personal balance sheet
income
Earnings from work or investment
allowance
the amount of money you plan to use for a certain budget category
present value
the amount of money you would need to deposit now in order to have a desired amount in the future
cash flow
the difference between cash coming in and cash going out of a business
market value
the price at which property would sell
time value of money
the principle that a dollar received today is worth more than a dollar received in the future
adjusted gross income
the result of adjustments subtracted from gross income
wealth
the value of assets owned
tax liability
total tax bill
annuity
yearly allowance
income tax
Tax paid to the state, federal, and local governments based on income earned over the past year.
inheritance tax
This is a tax one would pay on their parents or grandparents' money after they die
future value
What an amount invested today at a particular interest rate will be worth in the future.
exemption
freedom from rules
taxable income
income on which tax must be paid; total income minus exemptions and deductions
assests
money and other valuables belonging to an individual or business
discretionary income
money income left after necessities have been bought and paid for
principal
most important
exclusion
n. Non-admission.
surplus
A situation in which quantity supplied is greater than quantity demanded
estate tax
A tax on the estate, or total value of the money and property, of a person who has died
liabilities
Amounts owed to creditors
deficit
An excess of federal expenditures over federal revenues.
take-home pay
Money received after all adjustments and deductions are made.
real estate
property consisting of houses and land
insolvency
a financial state that occurs if liabilities are greater than assets
personal balance sheet
a financial statement that lists items of value owned, debts owed, and a person's net worth
personal financial statement
a summary of your current personal financial condition
tax credit
a variable amount that taxpayers may subtract from the total amount of their income tax
tax deduction
a variable amount that taxpayers may subtract from their gross income
itemized deduction
an allowed expense that you can deduct from your adjusted gross income
standard deduction
an amount of money set by the IRS that is not taxed
net worth
assets - liabilities
liquid assets
cash and items that can be quickly converted to cash
income tax return
document giving the tax collector information about the taxpayer's tax liability
