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
- Tax DeductionAn expense you can subtract from your income to lower the amount that gets taxed.
- Child Tax CreditA tax credit for parents that reduces what they owe for each qualifying child under a certain age.
- 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.
- Tax LiabilityThe total amount of tax you owe to the government for a given year before subtracting payments already made.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
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Plain-English education — not personalized legal, tax, or investment advice.