Financial Glossary

Here you’ll find clear and concise explanations of key financial terms and concepts. Our goal is to help you better understand essential topics across the financial world.

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Featured
Withholding
Will

Y

Featured
Yield Curve
Yield

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Zero-Coupon Bond

0-9

August Jepsen August Jepsen

Taxable Income

Taxable income is the portion of your gross income that is subject to federal (and sometimes state or local) income tax after subtracting allowable deductions, such as the standard deduction or itemized deductions. It includes most types of income—wages, salaries, tips, investment gains, retirement distributions, and other earnings—unless a specific law exempts it. The IRS uses your taxable income to determine your tax bracket and calculate how much tax you owe in a given year.

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