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
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
- Tax BracketA range of income taxed at a specific rate, with higher slices of your income taxed at higher percentages.
- WithholdingMoney your employer takes out of each paycheck and sends to the government toward your expected tax bill.
- Tax RefundMoney the government returns to you when you paid more tax during the year than you actually owed.
- Tax CreditA dollar-for-dollar reduction of the tax you owe, making it more valuable than a deduction of the same size.
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.