Unified tax credit

Unified tax credit

A federal tax credit that reduces tax liability, dollar for dollar, on lifetime gifts and asset transfers at death.

Unified Credit

In the United States, a tax credit on estates and large gifts. The unified credit is exceptionally large so that most people will not need to pay federal taxes on their estates and large gifts. For example, the unified credit on an estate is usually around $1 million, meaning that the estate has to be worth more than that in order to be subject to the estate tax.