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
- Standard DeductionA fixed dollar amount you can subtract from your income without needing to track individual expenses.
- Tax BracketA range of income taxed at a specific rate, with higher slices of your income taxed at higher percentages.
- DependentA qualifying child or relative you support financially, which can unlock deductions and credits on your return.
- Tax ReturnThe annual form you file to report income, claim deductions and credits, and settle up what you owe or are owed.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
More in Taxes
1099Adjusted Gross Income (AGI)Alternative Minimum Tax (AMT)Capital Gains TaxChild Tax CreditDividend Tax
Plain-English education — not personalized legal, tax, or investment advice.