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
- Tax ReturnThe annual form you file to report income, claim deductions and credits, and settle up what you owe or are owed.
- Tax LiabilityThe total amount of tax you owe to the government for a given year before subtracting payments already made.
- Itemized DeductionListing out specific eligible expenses to subtract from income when they add up to more than the standard deduction.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
- Tax DeductionAn expense you can subtract from your income to lower the amount that gets taxed.
More in Taxes
1099Adjusted Gross Income (AGI)Alternative Minimum Tax (AMT)Capital Gains TaxChild Tax CreditDependent
Plain-English education — not personalized legal, tax, or investment advice.