Tax & Accounting

A family of IRS forms (1099-NEC, 1099-INT, 1099-DIV, etc.) reporting income from non-employer sources like fre…

Your total income minus specific deductions (like retirement contributions and student-loan interest). The sta…

A loss realised when an investment is sold for less than its purchase price. Can offset capital gains and up t…

Total tax paid divided by total income. The true average rate, typically lower than your marginal rate.

Quarterly tax payments self-employed individuals and others without withholding must make to avoid underpaymen…

Federal Insurance Contributions Act — the payroll tax funding Social Security (6.2%) and Medicare (1.45%), mat…

Listing specific eligible expenses (mortgage interest, charitable gifts, SALT, etc.) to reduce taxable income …

The tax rate applied to your next dollar of income — your top bracket. Often higher than your effective rate.

A business structure (LLC, S-corp, partnership) where income passes through to owners' personal returns rather…

Dividends taxed at the lower long-term capital gains rate (0%, 15%, or 20%) rather than as ordinary income, if…

State and Local Tax deduction. Currently capped at $10,000 per year under the Tax Cuts and Jobs Act, limiting …

The IRS form sole proprietors and single-member LLCs use to report business income and expenses on their perso…

The IRS form used to report capital gains and losses from selling investments, real estate, and other capital …

A fixed deduction from taxable income that taxpayers can take without itemising. Roughly $14k single / $29k ma…

A range of income taxed at a particular rate. The U.S. uses a progressive system with brackets that rise as in…

A dollar-for-dollar reduction of tax owed (e.g. Child Tax Credit). More valuable than a deduction of the same …

An expense subtracted from taxable income before tax is calculated. Worth your marginal tax rate × the deducti…

Money returned by the government when you've overpaid taxes through withholding or estimated payments. Essenti…

Intentionally selling losing investments to realise losses that offset taxable gains, then reinvesting in simi…

A form employers send employees and the IRS each year reporting wages paid and taxes withheld. The basis for m…

An IRS rule disallowing the loss deduction if you buy back a 'substantially identical' security within 30 days…

The portion of an employee's paycheck the employer sends directly to the IRS as advance payment toward annual …