A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
- Itemized DeductionListing out specific eligible expenses to subtract from income when they add up to more than the standard deduction.
- Tax LiabilityThe total amount of tax you owe to the government for a given year before subtracting payments already made.
- Adjusted Gross Income (AGI)Your total income minus certain adjustments, used as the starting point for figuring out how much tax you owe.
- Tax BracketA range of income taxed at a specific rate, with higher slices of your income taxed at higher percentages.
More in Taxes
Plain-English education — not personalized legal, tax, or investment advice.