Tuesday, 13 April 2021, 12:26 PM
Site: MoneyU
Course: MoneyU (MoneyU)
Glossary: MoneyU Glossary of Terms
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Take Home PayThe amount of money you earn after all deductions. |
Tax creditAn amount that a taxpayer who meets certain criteria can subtract from tax owed. Examples include a credit for earned income below a certain limit and for qualified post-secondary school expenses. (See Tax deduction and Tax exemption.) |
Tax deductionAn expense that a taxpayer can subtract from taxable income. Examples include deductions for home mortgage interest and for charitable gifts. (See Tax credit and Tax exemption.) |
Tax exemptionEarnings, such as interest from municipal bonds, that are free of certain taxes. (See Tax credit and Tax deduction.) |
Tax-Deferred Earnings (Investment)Earnings on which taxes are not paid until a future date, usually when funds are withdrawn. The TSP and traditional IRAs are examples of vehicles that offer tax-deferred earnings. |
Tax-Exempt EarningsEarnings on which taxes are never paid. Roth IRAs and municipal bonds are examples of vehicles that offer tax-exempt earnings. |
Taxable IncomeAny money you earn or receive - such as salary, bonuses or interest from investments - that can be taxed by the Federal, state, or local government. |
TaxesA compulsory payment by individuals/organizations to the government; fees placed on income, prop­erty, or goods to support government programs. |
Tenancy By The EntiretiesVery similar to joint tenancy with right of survivorship. This form of ownership can exist only between married couples. It is not available in all states. It prevents the creditors of one spouse from taking one-half of the property to settle a debt. |
Tenancy In CommonOwnership by more than one person so that when one owner dies, his or her ownership share passes to the person's heirs or beneficiaries, and not automatically to other tenants. Compare to joint tenancy with right of survivorship and tenancy by the entireties. |