Taxes
Keeping more of what you earn.
Taxes are the biggest bill most people pay, and the one they understand least. These terms turn the forms, brackets, and deductions into plain language so you can make smarter, year-round decisions.
All Taxes terms(47)
- 1099A family of forms reporting income you earned outside a regular job, such as freelance work or investment payouts.
- Adjusted Gross Income (AGI)Your total income minus certain adjustments, used as the starting point for figuring out how much tax you owe.
- Alternative Minimum Tax (AMT)A parallel tax calculation that ensures higher earners with many deductions still pay a minimum amount of tax.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Child Tax CreditA tax credit for parents that reduces what they owe for each qualifying child under a certain age.
- DependentA qualifying child or relative you support financially, which can unlock deductions and credits on your return.
- Dividend TaxThe tax owed on payments companies distribute to shareholders, with rates depending on the type of dividend.
- Earned IncomeMoney you make from working, such as wages, salary, tips, or self-employment, as opposed to investment income.
- Earned Income Tax Credit (EITC)A refundable credit for low-to-moderate income workers that grows with earnings up to a limit, then phases out.
- Estimated TaxesPayments made throughout the year on income that has no tax withheld, such as freelance or investment earnings.
- Excise TaxA tax on specific goods like fuel, alcohol, or tobacco, often built into the price rather than added at checkout.
- FICAThe payroll tax that funds Social Security and Medicare, split between you and your employer on your wages.
- Filing StatusA category based on your marital and household situation that affects your tax rates, deductions, and eligibility.
- Flexible Spending Account (FSA)An employer account that lets you set aside pre-tax money for medical or dependent care costs within a plan year.
- Health Savings Account (HSA)A tax-advantaged account for medical costs, paired with a high-deductible health plan, offering strong tax benefits.
- Itemized DeductionListing out specific eligible expenses to subtract from income when they add up to more than the standard deduction.
- Long-Term Capital GainsProfit from selling an asset held more than a year, usually taxed at lower rates than ordinary income.
- Marginal Tax RateThe tax rate applied to your last dollar of income, meaning the rate on your highest bracket.
- Medicare TaxA payroll tax on all wages that helps fund hospital and medical coverage for people on Medicare.
- Mortgage Interest DeductionA tax break that lets homeowners subtract the interest paid on their home loan from taxable income.
- Payroll TaxTaxes taken out of wages to fund programs like Social Security and Medicare, paid by both worker and employer.
- Pre-Tax ContributionMoney put into an account before taxes are applied, lowering your taxable income now and taxed on withdrawal later.
- Progressive TaxA tax system where the rate rises as income increases, so higher earners pay a larger share of each added dollar.
- Property TaxA tax local governments charge on the value of real estate you own, funding schools and community services.
- Regressive TaxA tax that takes a larger share of income from lower earners than higher earners, such as many sales taxes.
- Sales TaxA tax added to the price of goods and services at checkout, collected by the seller for the government.
- SALT DeductionA deduction for state and local taxes paid, including income and property taxes, subject to a yearly cap.
- Self-Employment TaxThe Social Security and Medicare tax that self-employed people pay to cover both the employee and employer shares.
- Social Security TaxA payroll tax on wages up to an annual limit that funds retirement, disability, and survivor benefits.
- Standard DeductionA fixed dollar amount you can subtract from your income without needing to track individual expenses.
- State Income TaxA tax some states charge on your earnings, separate from federal income tax, with rates that vary by state.
- Tax AuditA review by tax authorities of your return and records to confirm you reported income and deductions correctly.
- Tax BracketA range of income taxed at a specific rate, with higher slices of your income taxed at higher percentages.
- Tax CreditA dollar-for-dollar reduction of the tax you owe, making it more valuable than a deduction of the same size.
- Tax DeductionAn expense you can subtract from your income to lower the amount that gets taxed.
- Tax DeferralDelaying taxes on money until a later date, letting it grow untaxed in the meantime inside certain accounts.
- Tax ExtensionA request for more time to file your return, though any tax you owe is still due by the original deadline.
- Tax LiabilityThe total amount of tax you owe to the government for a given year before subtracting payments already made.
- Tax RefundMoney the government returns to you when you paid more tax during the year than you actually owed.
- Tax ReturnThe annual form you file to report income, claim deductions and credits, and settle up what you owe or are owed.
- Tax-Advantaged AccountAn account offering tax breaks on contributions, growth, or withdrawals to encourage saving for goals like retirement.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
- Underpayment PenaltyA charge for paying too little tax during the year through withholding or estimated payments.
- Unearned IncomeMoney that comes from sources other than working, such as interest, dividends, or capital gains.
- W-2A form your employer sends each year showing how much you earned and how much tax was withheld from your pay.
- W-4A form you give your employer to tell them how much tax to withhold from each paycheck.
- WithholdingMoney your employer takes out of each paycheck and sends to the government toward your expected tax bill.