Public reference library
Tax concepts, one mechanism at a time.
Look up a term when a lesson uses it, follow a section in order, or jump from a concept directly into the calculator that demonstrates it.
14 of 14 concepts
Ordinary incomeIncome that ordinarily flows through the 10% through 37% progressive schedules.Preferential incomeQualified dividends and eligible long-term gains that may use 0%, 15%, and 20% rate bands.Short-term versus long-term gainThe holding-period distinction that routes net gains into different rate systems.
Standard deductionA fixed deduction available to many filers instead of itemizing eligible expenses.Taxable incomeThe amount remaining after the modeled deduction, divided into ordinary and preferential portions.Marginal tax bracketA progressive schedule where only the dollars inside a band use that band's rate.Effective tax rateThe total modeled tax divided by the included gross income.Capital-gain stackingThe rule that positions preferential dollars above taxable ordinary income when locating their rate bands.