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
- FICAThe payroll tax that funds Social Security and Medicare, split between you and your employer on your wages.
- Payroll TaxTaxes taken out of wages to fund programs like Social Security and Medicare, paid by both worker and employer.
- 1099A family of forms reporting income you earned outside a regular job, such as freelance work or investment payouts.
- Estimated TaxesPayments made throughout the year on income that has no tax withheld, such as freelance or investment earnings.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
More in Taxes
Adjusted Gross Income (AGI)Alternative Minimum Tax (AMT)Capital Gains TaxChild Tax CreditDependentDividend Tax
Plain-English education — not personalized legal, tax, or investment advice.