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
- Gross IncomeYour total earnings before any taxes, retirement contributions, or other deductions are taken out of your paycheck.
- Unearned IncomeMoney that comes from sources other than working, such as interest, dividends, or capital gains.
- 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.
- Self-Employment TaxThe Social Security and Medicare tax that self-employed people pay to cover both the employee and employer shares.
- Payroll TaxTaxes taken out of wages to fund programs like Social Security and Medicare, paid by both worker and employer.
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.