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
- Earned IncomeMoney you make from working, such as wages, salary, tips, or self-employment, as opposed to investment income.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Dividend TaxThe tax owed on payments companies distribute to shareholders, with rates depending on the type of dividend.
- Gross IncomeYour total earnings before any taxes, retirement contributions, or other deductions are taken out of your paycheck.
- Tax DeferralDelaying taxes on money until a later date, letting it grow untaxed in the meantime inside certain accounts.
More in Taxes
1099Adjusted Gross Income (AGI)Alternative Minimum Tax (AMT)Child Tax CreditDependentEarned Income Tax Credit (EITC)
Plain-English education — not personalized legal, tax, or investment advice.