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
- Estimated TaxesPayments made throughout the year on income that has no tax withheld, such as freelance or investment earnings.
- WithholdingMoney your employer takes out of each paycheck and sends to the government toward your expected tax bill.
- Tax LiabilityThe total amount of tax you owe to the government for a given year before subtracting payments already made.
- Tax ExtensionA request for more time to file your return, though any tax you owe is still due by the original deadline.
- 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.