Tax glossary
By Bankrate.com

The yearly ritual of filing taxes needn't be filled with fear and dread. Get a handle on the basics with this glossary of commonly used tax terms.

Estate planning terms to know:

1. Ability to pay 28. Distribution 2. Above-the-line deduction 29. Dividend 3. Active income 30. Domicile 4. Ad valorem tax 31. e-file 5. Adjusted gross income (AGI) 32. Earned income 6. Allowance 33. Earned income credit 7. AMT 34. Effective tax rate 8. Backup withholding 35. Enrolled agent 9. Basis 36. Estimated tax payments 10. Before-tax income 37. Exclusion 11. Capital asset 38. Exemption 12. Capital expenditure 39. Filing extension 13. Capital gain 40. Filing status 14. Capital gain distribution 41. Foreign tax credit or deduction 15. Capital gains tax 42. Form 1040EZ 16. Capital loss 43. Form 1099-DIV 17. Capitalization rate 44. Form 1099-INT 18. Carry back 45. Form 1099-R 19. Carry forward 46. Form 4868 20. Casualty and theft loss 47. Form 9465 21. Child tax credit 48. Form W-2 22. Deductible contribution 49. Form W-4 23. Deduction 50. Marginal tax rate 24. Dependent 51. Tax credit 25. Dependent care credit 52. Refund 26. Depreciation 53. Underpayment penalty 27. Disaster loss 54. Withholding

1. Ability to pay -- A principle of taxation. Individuals who earn more income pay more tax, not because they use more government goods and services but because taxpayers who earn more have the ability to pay more. The progressive tax, or higher tax rates for people with higher incomes, is based on this principle.