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Individual TaxTax Glossary
What Is “Standard deduction”?
The standard deduction is a fixed dollar amount that the IRS allows you to subtract from your income to reduce...
Individual TaxTax Glossary
What Is “Progressive tax system”?
A progressive tax system is a tax structure where the tax rate increases as a taxpayer’s taxable income increases. Under...
Individual TaxTax Glossary
What Is “Effective tax rate”?
Your effective tax rate is the actual average percentage of your income that you pay in taxes. It is calculated...
Individual TaxTax Glossary
What Is “Marginal tax rate”?
Your marginal tax rate is the tax rate applied to the very last dollar of your taxable income. Because the...
Individual TaxTax Glossary
What Is “Tax bracket”?
A tax bracket is a range of taxable income that is subject to a specific tax rate under a progressive...
Individual TaxTax Glossary
What Is “Balance due”?
A balance due is the amount of tax you still owe to the IRS or a state tax authority after...
Individual TaxTax Glossary
What Is “Tax refund”?
A tax refund is a reimbursement from the government to a taxpayer who paid more taxes during the year than...
Individual TaxTax Glossary
What Is “Tax due”?
Tax due is the outstanding balance you owe to the IRS or a state tax authority when your total tax...
Individual TaxTax Glossary
What Is “Tax liability”?
Tax liability is the total amount of tax you legally owe to a government authority, such as the IRS, state,...
Individual TaxTax Glossary
What Is “Taxable income”?
Taxable income is the portion of your gross income that is actually subject to federal income tax after all allowable...