Unified Tax Credit

DEFINITION of 'Unified Tax Credit'

A tax credit that is afforded to every man, woman and child in America by the IRS. This credit allows each person to gift a certain amount of their assets to other parties without having to pay gift, estate or generation-skipping transfer taxes.

BREAKING DOWN 'Unified Tax Credit'

The unified tax credit can be used by taxpayers either before or after death. It is important to keep up to date on it as the unified tax credit can change.

RELATED TERMS
  1. Annual Exclusion

    The amount of money that may be transferred by gift from one ...
  2. Gift

    Property, money or assets that one person transfers to another ...
  3. Generation-Skipping Transfer Tax ...

    A tax incurred when there is a transfer of property by gift or ...
  4. Gift Tax Return

    A federal tax form that must be filled out by any individual ...
  5. Gift Tax

    A federal tax applied to an individual giving anything of value ...
  6. Form 706-NA: United States Estate ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
Related Articles
  1. Professionals

    Federal Estate and Gift Tax

    Federal Estate and Gift Tax
  2. Professionals

    Estate and Gift Taxes

    FINRA/NASAA Series 66: Section 3 Estate and Gift Taxes. In this section: unified estate and gift tax credit, gift tax exemption and estate tax exclusion.
  3. Professionals

    Estate and Gift Taxes

    NASAA Series 65: Section 13 Estate and Gift Taxes. In this section unified estate and gift tax, tax credit, and exclusions and marital deduction.
  4. Professionals

    Gift Tax Filing Requirements

    Gift Tax Filing Requirements
  5. Professionals

    Credits

    Credits
  6. Professionals

    Specialized Returns For Individuals

    Describes exam topics related to estate and gift taxes.
  7. Professionals

    Answer Key

    Answer Key
  8. Professionals

    Tax Considerations

    FINRA Series 7: Section 2 - Tax Considerations
  9. Professionals

    Exclusions and Deductions

    Exclusions and Deductions
  10. Professionals

    Generation-Skipping Transfer Tax

    Generation-Skipping Transfer Tax
RELATED FAQS
  1. What is the difference between a write-off and a deduction?

    Understand the differences between a tax write-off and a tax deduction. Learn how each one works to reduce income taxes and ... Read Answer >>
  2. Can I give stock as a gift?

    Stocks, bonds or any other securities can be transferred as gifts. Giving the gift of stock also has benefits for the giver. ... Read Answer >>
  3. Do I need to file an income tax return every year?

    Understand if a person needs to file a tax return every year. Learn the benefits of filing a yearly income tax return even ... Read Answer >>
  4. How do I sign up for the saver's tax credit?

    The saver's tax credit is a non-refundable tax credit available to eligible taxpayers in the U.S. who make contributions ... Read Answer >>
  5. Justin and Britney, multi-millionaires, want to make the maximum gift of cash to ...

    The correct answer is c. A donor of money and/or gifts may give up to $12,000 to as many different recipients as they desire ... Read Answer >>
  6. Will jointly filing taxes have the effect of joining a couple's credit?

    The only thing that "joins" the credit of a married couple is the ownership of joint accounts. In other words, if there is ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center