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 DeductionAn expense you can subtract from your income to lower the amount that gets taxed.
- Mortgage Interest DeductionA tax break that lets homeowners subtract the interest paid on their home loan from taxable income.
- SALT DeductionA deduction for state and local taxes paid, including income and property taxes, subject to a yearly cap.
- 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 CreditDependent
Plain-English education — not personalized legal, tax, or investment advice.