General Tax Terms

After-Tax Income is the cheerful treasure left after taxes are paid! It’s the money you get to spend, save, or invest, making your financial dreams come true!

Alternative Minimum Tax (AMT) is like a safety net for tax fairness! It ensures that high earners pay at least a minimum amount, preventing loopholes from stealing the spotlight.

Annualized Income is like your financial spotlight! It transforms any income stream into a yearly total, helping you see the bigger picture of your earnings with a cheerful flair!

Allowable Deductions are like magical keys that unlock savings on your taxes! These expenses can reduce your taxable income, helping you keep more of your hard-earned money. Cheers to smart spending!

Basis (Cost Basis): The cheerful starting point for your investment journey! It’s the original price you paid, helping you track gains or losses. Happy investing!

Capital Gains are the delightful profits you earn when you sell an asset for more than you paid. It’s like finding money in your pocket—only better!

Capital losses are like unwelcome party crashers in your investment soirée! They occur when you sell an asset for less than you paid, but fear not—they can help sweeten your tax returns!

Deductible Expenses are your financial fairy godmothers! These costs can be subtracted from your income, reducing your tax bill and leaving you with more cash to enjoy life!

Effective Tax Rate: The cheerful measure of what you actually pay in taxes! It’s your total tax bill divided by your income, showing how much of your earnings go to the taxman. Fun with numbers!

Estimated Taxes are like your financial forecast, predicting what you owe the taxman! Pay quarterly to avoid surprises and keep your wallet happy. Keep smiling, tax season is manageable!