Financial glossary

Most people who inherit an IRA or 401(k) from someone who died in 2020 or later must empty it by the end of the 10th year after the death. If the owner had already reached their required beginning date, the beneficiary must also take an RMD each year in between.

Calculator: Inherited IRA RMD Calculator

See also: Required minimum distribution (RMD)

Your total income minus certain adjustments, such as deductible IRA and HSA contributions and student loan interest. It is the starting point for most income limits on your federal return.

Calculator: Schedule 1-A Calculator

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Modified adjusted gross income (MAGI)

Repaying a loan with equal scheduled payments that cover both interest and principal. Early payments are mostly interest; as the balance falls, more of each payment goes to principal. An amortization schedule shows the split payment by payment.

Calculators: Equipment Loan Calculator , Debt Consolidation Calculator , HELOC Payment Calculator

See also: Principal , Annual percentage rate (APR)

The yearly cost of borrowing, expressed as a percentage. For installment loans, APR includes the interest rate plus certain fees, so it lets you compare offers on equal terms. For credit cards, the APR is the interest rate charged on balances you carry.

Calculators: Credit Card Payoff Calculator , Debt Consolidation Calculator , Equipment Loan Calculator

See also: Daily periodic rate

The yearly return on a deposit account including the effect of compounding, which banks must disclose under the Truth in Savings Act. A 5% rate compounded monthly is an APY of about 5.12%.

Calculator: Compound Interest Calculator

See also: Compound interest , Annual percentage rate (APR)

The share of household income you are expected to pay toward the benchmark Marketplace plan before the premium tax credit covers the rest. It rises with your income as a percentage of the federal poverty line.

Calculator: ACA Subsidy Calculator 2026–2027

See also: Premium tax credit , Benchmark plan (SLCSP)

The method most credit card issuers use to calculate interest: the balance at the end of each day in the billing cycle, added up and divided by the number of days. Interest is roughly the average daily balance times the daily periodic rate times the days in the cycle.

Calculator: Credit Card Payoff Calculator

See also: Daily periodic rate , Grace period

SSDI benefits owed for the months between when your benefits should have started and when your claim was approved. They are usually paid as a lump sum, minus any representative fee.

Calculator: SSDI Back Pay Calculator

See also: Established onset date (EOD) , Retroactive benefits , Representative fee

Moving a balance from one credit card or loan to another card, usually to use a low or 0% introductory APR. Most cards charge a balance transfer fee, commonly 3% to 5% of the amount moved.

Calculator: Balance Transfer Calculator

See also: Introductory (promotional) APR , Debt consolidation

The second-lowest-cost silver plan available to you on the Marketplace. Your premium tax credit equals the benchmark premium minus your expected contribution, and you can apply it to other Marketplace plans except catastrophic plans.

Calculator: ACA Subsidy Calculator 2026–2027

See also: Premium tax credit , Applicable percentage

A tax rule that lets a business deduct a large share of the cost of qualifying equipment in the first year instead of spreading it over several years. The 2025 tax law permanently restored 100% bonus depreciation for qualifying property acquired after January 19, 2025.

Calculator: Equipment Loan Calculator

Guides: Section 179 vs. Bonus Depreciation: Writing Off Equipment in 2026 , Equipment Financing vs. Leasing: Which Costs Less for Your Business?

See also: Section 179 deduction

An equipment lease that transfers ownership to you for $1 at the end of the term. For tax purposes it is generally treated as a purchase, so you can depreciate the equipment or use the Section 179 deduction.

Calculator: Equipment Loan Calculator

Guide: Equipment Financing vs. Leasing: Which Costs Less for Your Business?

See also: Fair market value (FMV) lease , Section 179 deduction

Replacing your mortgage with a new, larger one and receiving the difference in cash. It resets the rate and term on your whole mortgage balance, which is why it is often compared with a HELOC.

Calculators: Cash-Out Refinance vs HELOC Calculator , Home Equity Calculator

Guide: HELOC vs. Cash-Out Refinance: How to Choose When Your Mortgage Rate Is Low

See also: HELOC (home equity line of credit) , Closing costs

Extra retirement contributions allowed from age 50: $8,000 more in a 401(k) and $1,100 more in an IRA for 2026, and $11,250 in a 401(k) at ages 60 to 63. Higher earners must make 401(k) catch-ups as Roth contributions from 2026.

Calculator: 401(k) Calculator

See also: Employer match

A credit of up to $2,200 for each child under 17 with a Social Security number for 2026. It shrinks by $50 for each $1,000 of income above $200,000 ($400,000 for married couples filing jointly). Up to $1,700 per child can be paid to you even if you owe no tax, as the additional child tax credit.

Calculator: Tax Refund Calculator 2026

See also: Tax deduction vs. tax credit , Earned income tax credit (EITC)

Fees paid to finalize a mortgage or refinance, such as origination, appraisal, title and recording fees. They commonly total 2% to 5% of the loan amount.

Calculators: Cash-Out Refinance vs HELOC Calculator , House Affordability Calculator

Guide: HELOC vs. Cash-Out Refinance: How to Choose When Your Mortgage Rate Is Low

The total of all loans secured by a home — the first mortgage plus any home equity loan or HELOC — divided by the home’s value. Many lenders cap CLTV at 80% to 90% for home equity borrowing.

Calculators: Home Equity Calculator , HELOC Payment Calculator

See also: Loan-to-value ratio (LTV) , Home equity

Interest earned on both your original deposit and the interest already added to it. Because interest earns interest, balances grow faster over time; at 7% a year, money roughly doubles every ten years.

Calculators: Compound Interest Calculator , 401(k) Calculator

See also: Annual percentage yield (APY)

The yearly increase in Social Security and SSI benefits to keep up with inflation. It equals the rise in the average CPI-W for July to September over the same months a year earlier, and it is paid from the following January. It was 2.8% for 2026 and is 3.6% for 2027.

Calculator: Social Security COLA Calculator 2027

See also: CPI-W , Hold-harmless provision , Primary insurance amount (PIA)

The consumer price index for urban wage earners and clerical workers, published monthly by the Bureau of Labor Statistics. Social Security uses its July to September average to set the cost-of-living adjustment.

Calculator: Social Security COLA Calculator 2027

See also: Cost-of-living adjustment (COLA)

The share of your available revolving credit you are using: total card balances divided by total credit limits. Credit scores consider both your overall ratio and each card’s ratio. Lower is better, and many experts suggest staying under 30%.

Calculators: Credit Utilization Calculator , Credit Card Payoff Calculator

Prescription drug coverage, for example from an employer, union, TRICARE or the VA, that is expected to pay at least as much as Medicare’s standard Part D coverage. Having it lets you delay Part D without a late enrollment penalty.

Calculator: Medicare Late Enrollment Penalty Calculator

See also: Medicare late enrollment penalty

A credit card’s APR divided by 365 (some issuers use 360). It is the rate applied to each day’s balance when interest is calculated.

Calculator: Credit Card Payoff Calculator

See also: Annual percentage rate (APR) , Average daily balance

A payoff strategy: pay the minimum on every debt and put all extra money toward the debt with the highest interest rate first. It costs the least total interest.

Calculator: Debt Payoff Calculator

See also: Debt snowball

Combining several debts into one new loan or credit line, ideally with a lower interest rate or a single, predictable payment. Common options are personal loans, balance transfer cards and home equity loans.

Calculators: Debt Consolidation Calculator , Balance Transfer Calculator

See also: Balance transfer

A payoff strategy: pay the minimum on every debt and put extra money toward the smallest balance first, regardless of its rate. It usually costs more interest than the avalanche but delivers quick wins that help some people stay motivated.

Calculator: Debt Payoff Calculator

See also: Debt avalanche

Your monthly debt payments divided by your gross (pre-tax) monthly income. Lenders look at the front-end ratio, which counts housing costs only, and the back-end ratio, which counts all debts including housing.

Calculators: Debt-to-Income (DTI) Ratio Calculator , House Affordability Calculator

The first phase of a HELOC, often 10 years, when you can borrow against your line. Many lenders allow interest-only payments during this time.

Calculator: HELOC Payment Calculator

Guide: Your HELOC Draw Period Is Ending: 6 Options Before the Payment Jumps

See also: HELOC (home equity line of credit) , Repayment period

A refundable credit for workers with low to moderate earnings. For 2026 it reaches $664 with no qualifying children and $8,231 with three or more, and it ends at incomes from $19,540 to $70,244 depending on family size and filing status.

Calculator: Tax Refund Calculator 2026

See also: Child tax credit , Adjusted gross income (AGI)

Money an employer adds to your 401(k) when you contribute, such as 50% of your contributions up to 6% of pay. Contributing less than the full match leaves part of it unclaimed, and a vesting schedule may apply.

Calculator: 401(k) Calculator

See also: Catch-up contributions

The date Social Security determines your disability began. It sets when your five-month waiting period starts, and so how much SSDI back pay you are owed.

Calculator: SSDI Back Pay Calculator

See also: Five-month waiting period , Back pay (past-due benefits)

An equipment lease with lower payments where, at the end, you return the equipment, renew the lease or buy the equipment at its fair market value. A true lease is generally deducted as rent rather than depreciated.

Calculator: Equipment Loan Calculator

Guide: Equipment Financing vs. Leasing: Which Costs Less for Your Business?

See also: Buyout lease ($1 buyout lease) , Section 179 deduction

The poverty guidelines HHS publishes each year by household size. Marketplace subsidies use the prior year’s guidelines: 2026 coverage uses the 2025 figures, which start at $15,650 for one person in the 48 contiguous states.

Calculator: ACA Subsidy Calculator 2026–2027

Guide: ACA Subsidies for Early Retirees: What Income Counts in 2026 and 2027

See also: Subsidy cliff

The Social Security and Medicare taxes taken from your paycheck: Social Security is 6.2% of wages up to the wage base ($184,500 in 2026, $192,300 in 2027), and Medicare is 1.45% of all wages, plus 0.9% on wages over $200,000 single ($250,000 married filing jointly). Your employer pays a matching share on top.

Calculator: Paycheck Calculator

See also: Primary insurance amount (PIA)

SSDI benefits generally begin with the sixth full month after your established onset date; nothing is paid for the first five full months. People with ALS are exempt.

Calculator: SSDI Back Pay Calculator

See also: Established onset date (EOD)

The age at which you can get your full Social Security retirement benefit: 67 for anyone born in 1960 or later, and between 66 and 67 for people born from 1955 to 1959. Claiming earlier reduces the benefit for life, and the earnings test applies only before this age.

Calculators: Social Security Earnings Limit Calculator , Social Security COLA Calculator 2027 , Social Security Claiming Age Calculator

See also: Retirement earnings test , Primary insurance amount (PIA)

For credit cards, the time between the end of a billing cycle and the payment due date — at least 21 days when a card offers one. If you pay the full statement balance by the due date, you usually owe no interest on new purchases.

Calculator: Credit Card Payoff Calculator

See also: Average daily balance

A revolving credit line secured by your home. You borrow as needed during the draw period, then repay principal and interest during the repayment period. Rates are usually variable: the prime rate plus a margin.

Calculators: HELOC Payment Calculator , Home Equity Calculator , Cash-Out Refinance vs HELOC Calculator

Guides: HELOC vs. Cash-Out Refinance: How to Choose When Your Mortgage Rate Is Low , Your HELOC Draw Period Is Ending: 6 Options Before the Payment Jumps

See also: Draw period , Repayment period , Prime rate , Combined loan-to-value (CLTV)

A Medicare rule that stops a Part B premium increase from lowering your Social Security payment. It protects people whose premium is taken from their benefit and who don’t pay IRMAA; their premium rises only by as much as their cost-of-living increase.

Calculator: Social Security COLA Calculator 2027

See also: Cost-of-living adjustment (COLA) , IRMAA

Your home’s market value minus everything you owe on loans secured by it. Lenders usually let you borrow only part of it, because they cap the combined loan-to-value ratio.

Calculator: Home Equity Calculator

See also: Combined loan-to-value (CLTV) , HELOC (home equity line of credit)

A fixed-rate loan secured by your home that pays you a lump sum at closing, repaid with equal monthly payments over a set term. Unlike a HELOC, the rate and payment don’t change.

Calculators: HELOC Payment Calculator , Home Equity Calculator

See also: HELOC (home equity line of credit) , Combined loan-to-value (CLTV)

An income-driven plan for federal student loans made before July 1, 2026. Payments are 10% (15% for pre-July 2014 borrowers) of income above 150% of the poverty guideline, never more than the 10-year standard payment, with forgiveness after 20 or 25 years.

Calculator: RAP Student Loan Calculator

See also: Repayment Assistance Plan (RAP) , Public Service Loan Forgiveness (PSLF)

A temporary low or 0% rate on purchases or balance transfers, often lasting 12 to 21 months. When it ends, any remaining balance starts accruing interest at the card’s regular APR.

Calculator: Balance Transfer Calculator

See also: Balance transfer , Annual percentage rate (APR)

The income-related monthly adjustment amount: an extra charge on Medicare Part B and Part D premiums for people with higher incomes. It is based on your MAGI from two years earlier, so 2026 premiums use your 2024 tax return. For 2026 it applies above $109,000 of MAGI for single filers and $218,000 for joint filers.

Calculator: Roth Conversion Calculator

Guides: Medicare Open Enrollment Checklist: What to Review Before December 7 , How to Appeal IRMAA: A Step-by-Step Guide to Form SSA-44

See also: Life-changing event , Modified adjusted gross income (MAGI)

An event such as retirement or reduced work hours, marriage, divorce or a spouse’s death that lets you ask Social Security to recalculate IRMAA using more recent income, by filing Form SSA-44.

Guides: Medicare Open Enrollment Checklist: What to Review Before December 7 , How to Appeal IRMAA: A Step-by-Step Guide to Form SSA-44

See also: IRMAA

A loan’s balance divided by the value of the property securing it. A $240,000 mortgage on a $300,000 home has an 80% LTV.

Calculators: Home Equity Calculator , Cash-Out Refinance vs HELOC Calculator , House Affordability Calculator

See also: Combined loan-to-value (CLTV)

The rate applied to your last dollar of taxable income — your tax bracket. A deduction saves money at your marginal rate, so the same deduction is worth more in a higher bracket.

Calculators: Schedule 1-A Calculator , No Tax on Overtime Calculator , No Tax on Tips Calculator

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Tax deduction vs. tax credit

Private health plans approved by Medicare that replace Original Medicare Parts A and B, and usually include drug coverage. They typically use provider networks and have a yearly out-of-pocket maximum. You still pay the Part B premium, plus any IRMAA.

Guide: Medicare Open Enrollment Checklist: What to Review Before December 7

See also: Medigap (Medicare Supplement) , IRMAA

An amount added to your Medicare premium if you didn’t sign up when first eligible. For Part B it’s 10% of the standard premium per full 12-month period without coverage; for Part D, 1% of the national base beneficiary premium per uncovered month.

Calculator: Medicare Late Enrollment Penalty Calculator

Guide: Medicare Open Enrollment Checklist: What to Review Before December 7

See also: Creditable drug coverage , Medicare open enrollment

The yearly window from October 15 to December 7 when you can join, switch or drop a Medicare Advantage or Part D drug plan. Changes take effect on January 1.

Calculator: Medicare Late Enrollment Penalty Calculator

Guide: Medicare Open Enrollment Checklist: What to Review Before December 7

See also: Medicare Advantage (Part C)

A free option in every Medicare drug plan that replaces payments at the pharmacy with monthly bills, spreading your drug costs over the rest of the year. It has no interest or fees and doesn’t change your total costs.

Calculator: Medicare Part D Calculator 2027

See also: Part D out-of-pocket cap

Most people approved for SSDI become eligible for Medicare after 24 months of disability benefits, counted from the month benefits begin rather than the approval date. People with ALS get Medicare as soon as their benefits start.

Calculator: SSDI Back Pay Calculator

See also: SSDI (Social Security Disability Insurance)

Private insurance that pays some of the costs Original Medicare doesn’t, such as deductibles and coinsurance. It can’t be combined with Medicare Advantage. Outside your first Medigap enrollment period, insurers in most states can use health questions to decide whether to sell you a policy.

Guides: Medicare Open Enrollment Checklist: What to Review Before December 7 , Medicare Advantage vs Original Medicare for 2027: Which Is Better?

See also: Medicare Advantage (Part C)

The smallest amount you must pay on a credit card each month to stay current — often 1% to 3% of the balance plus interest and fees, or a flat minimum such as $25 to $40. Paying only the minimum can stretch payoff over many years and multiply the interest you pay.

Calculators: Credit Card Payoff Calculator , Debt Payoff Calculator

Adjusted gross income with certain amounts added back, and the definition depends on the program. For Marketplace subsidies it adds tax-exempt interest, untaxed Social Security benefits and excluded foreign income; for IRMAA, it is AGI plus tax-exempt interest; for the 2025–2028 tips, overtime, car loan interest and senior deductions, it is AGI plus excluded foreign income.

Calculators: ACA Subsidy Calculator 2026–2027 , Schedule 1-A Calculator , Roth Conversion Calculator

Guides: ACA Subsidies for Early Retirees: What Income Counts in 2026 and 2027 , Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Adjusted gross income (AGI) , Phase-out

Owing more on a loan than the asset is worth, common with cars in the first years of a long loan. When you trade in a car with negative equity, the shortfall is usually added to the new loan.

Calculator: Auto Loan Calculator

See also: Loan-to-value ratio (LTV)

A one-time charge for making a loan, usually a percentage of the loan amount. On personal loans it is typically 0% to 10% and is often taken out of the money you receive, so a $10,000 loan with a 5% fee pays out $9,500. The fee is included in the loan’s APR.

Calculators: Personal Loan Calculator , Debt Consolidation Calculator

See also: Annual percentage rate (APR)

The most you pay in a year for drugs your Medicare drug plan covers: $2,100 in 2026 and $2,400 in 2027. It counts the deductible, your coinsurance or copays and insulin, but not premiums. Once you reach it, covered drugs cost $0 until December 31.

Calculator: Medicare Part D Calculator 2027

Guide: Medicare Open Enrollment Checklist: What to Review Before December 7

See also: Medicare Prescription Payment Plan

An income range over which a tax benefit shrinks. For example, the tips and overtime deductions fall by $100 for every $1,000 of MAGI above $150,000 ($300,000 for joint filers).

Calculators: No Tax on Overtime Calculator , No Tax on Tips Calculator , Senior Bonus Deduction Calculator

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Modified adjusted gross income (MAGI)

Principal, interest, taxes, insurance and association dues: the full monthly housing payment lenders use when calculating debt-to-income ratios.

Calculators: Debt-to-Income (DTI) Ratio Calculator , Mortgage Calculator , House Affordability Calculator

See also: Debt-to-income ratio (DTI)

The federal subsidy that lowers Marketplace health insurance premiums. For 2026 it is generally available with household income from 100% to 400% of the federal poverty line. It can be paid in advance to your insurer and is reconciled on your tax return.

Calculator: ACA Subsidy Calculator 2026–2027

Guides: ACA Subsidies for Early Retirees: What Income Counts in 2026 and 2027 , Bronze vs Silver ACA Plans for 2027: Which Costs Less?

See also: Benchmark plan (SLCSP) , Subsidy cliff , Modified adjusted gross income (MAGI)

Your full monthly Social Security benefit, calculated from your lifetime earnings. Your SSDI benefit generally equals your PIA. Each year’s cost-of-living adjustment is applied to it.

Calculators: SSDI Back Pay Calculator , Social Security COLA Calculator 2027 , Social Security Earnings Limit Calculator

See also: SSDI (Social Security Disability Insurance) , Cost-of-living adjustment (COLA)

The benchmark rate banks use to set many variable rates, including most HELOCs and credit cards. It moves with the Federal Reserve’s target for the federal funds rate and typically sits 3 percentage points above the top of that range.

Calculators: HELOC Payment Calculator , SBA Loan Calculator

See also: HELOC (home equity line of credit)

The amount you borrowed, or the part of it you still owe, not counting interest. Extra payments applied to principal reduce the interest charged from then on.

Calculators: Debt Payoff Calculator , Equipment Loan Calculator

See also: Amortization

Insurance that protects the lender on a conventional mortgage with less than 20% down, charged as a yearly percentage of the loan. You can ask to cancel it at 80% of the home’s original value, and it ends automatically at 78%.

Calculators: Mortgage Calculator , House Affordability Calculator

See also: Loan-to-value ratio (LTV) , PITIA

The figure that decides whether your Social Security is taxable: your other income plus tax-exempt interest plus half of your benefits. Up to 50% of benefits becomes taxable above $25,000 ($32,000 for married couples filing jointly), and up to 85% above $34,000 ($44,000).

Calculators: Social Security Tax Calculator , Tax Refund Calculator 2026

See also: Adjusted gross income (AGI) , Modified adjusted gross income (MAGI)

Tax-free forgiveness of federal Direct Loans after 120 qualifying monthly payments while working full time for a government or qualifying nonprofit employer. Payments under RAP, IBR and the 10-year standard plan count; the tiered standard plan’s don’t.

Calculator: RAP Student Loan Calculator

See also: Repayment Assistance Plan (RAP) , Income-based repayment (IBR)

A gift sent directly from your IRA to a qualifying charity, available from age 70½. It counts toward your required minimum distribution but isn’t included in your income, so it lowers your AGI.

Calculator: RMD Calculator

Guides: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31 , How to Appeal IRMAA: A Step-by-Step Guide to Form SSA-44

See also: Required minimum distribution (RMD) , Adjusted gross income (AGI)

For the overtime deduction, only the premium portion of overtime pay required by the Fair Labor Standards Act — the “half” in time-and-a-half for hours over 40 in a workweek. Regular pay for those hours, and overtime required only by state law or a contract, doesn’t count. The deduction is capped at $12,500 ($25,000 for joint filers).

Calculators: No Tax on Overtime Calculator , Schedule 1-A Calculator

See also: Phase-out

For the tips deduction, voluntary cash or charged tips received in an occupation that customarily received tips on or before December 31, 2024, as listed by the Treasury. Mandatory service charges don’t qualify. The deduction is capped at $25,000.

Calculators: No Tax on Tips Calculator , Schedule 1-A Calculator

See also: Phase-out

Under the Fair Labor Standards Act, the hourly rate used to calculate overtime. It generally includes hourly pay plus shift differentials, commissions and non-discretionary bonuses for the week, divided by the hours worked.

Calculator: No Tax on Overtime Calculator

See also: Qualified overtime compensation

The income-driven plan for federal student loans that began on July 1, 2026. Payments are 1% to 10% of adjusted gross income, minus $50 a month per dependent, with a $10 minimum. Unpaid interest is waived on on-time payments, and any balance left after 30 years is forgiven.

Calculator: RAP Student Loan Calculator

See also: Income-based repayment (IBR) , Public Service Loan Forgiveness (PSLF)

The phase of a HELOC after the draw period ends, often lasting up to 20 years, when you can no longer borrow and must repay principal plus interest. Payments can jump sharply when it begins.

Calculator: HELOC Payment Calculator

Guide: Your HELOC Draw Period Is Ending: 6 Options Before the Payment Jumps

See also: Draw period , HELOC (home equity line of credit)

What an attorney or other representative is paid for winning a disability claim. Under a standard fee agreement it is 25% of past-due benefits, capped at $9,200, and Social Security pays it directly out of your back pay.

Calculator: SSDI Back Pay Calculator

See also: Back pay (past-due benefits)

The amount you must withdraw each year from traditional IRAs and most workplace retirement plans once you reach the required age, currently 73 for most people. Withdrawals are taxable income, and missing one brings an excise tax.

Calculators: Roth Conversion Calculator , RMD Calculator , Inherited IRA RMD Calculator

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Qualified charitable distribution (QCD) , Adjusted gross income (AGI) , 10-year rule (inherited IRAs)

The rule that holds back some Social Security benefits if you work while collecting before full retirement age: $1 for every $2 earned over $25,560 in 2027, or $1 for every $3 over $67,920 in the year you reach full retirement age. Withheld benefits are credited back once you reach that age.

Calculator: Social Security Earnings Limit Calculator

See also: Full retirement age (FRA)

SSDI benefits paid for months before you applied. Social Security can pay up to 12 months of retroactive benefits if you were already disabled, and past the waiting period, during that time.

Calculator: SSDI Back Pay Calculator

See also: Back pay (past-due benefits) , Five-month waiting period

Moving money from a traditional IRA or 401(k) to a Roth account. The amount converted is added to your taxable income for the year, but qualified withdrawals from the Roth later are tax-free. A conversion can raise income-tested costs such as IRMAA and can’t be undone.

Calculators: Senior Bonus Deduction Calculator , Roth Conversion Calculator

Guides: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31 , ACA Subsidies for Early Retirees: What Income Counts in 2026 and 2027

See also: Modified adjusted gross income (MAGI) , IRMAA

The Small Business Administration’s main loan program: loans of up to $5 million made by banks and other lenders, with part of each loan guaranteed by SBA. They can fund working capital, equipment, real estate and business purchases, with terms of up to 25 years.

Calculator: SBA Loan Calculator

See also: SBA guaranty fee , Prime rate

An upfront fee SBA charges on the guaranteed portion of a 7(a) loan, which the lender usually passes on to the borrower. It can typically be paid from the loan proceeds. SBA can lower or waive it for a fiscal year.

Calculator: SBA Loan Calculator

See also: SBA 7(a) loan

The IRS form, new for 2025 returns, used to claim the four temporary deductions created by the 2025 tax law: qualified tips, qualified overtime, car loan interest and the senior deduction. You can claim them whether or not you itemize.

Calculators: Schedule 1-A Calculator , Car Loan Interest Deduction Calculator

See also: Qualified tips , Qualified overtime compensation , Senior deduction

A tax election that lets a business deduct the full cost of qualifying equipment and software in the year it is placed in service, rather than depreciating it over time. The 2025 tax law raised the annual limit to $2.5 million, phasing out once equipment purchases exceed $4 million.

Calculator: Equipment Loan Calculator

Guides: Section 179 vs. Bonus Depreciation: Writing Off Equipment in 2026 , Equipment Financing vs. Leasing: Which Costs Less for Your Business?

See also: Bonus depreciation

A temporary deduction of up to $6,000 for each taxpayer age 65 or older, for tax years 2025 through 2028. It is reduced by 6% of MAGI above $75,000 ($150,000 for joint filers) and comes on top of the regular extra standard deduction for people 65 and older.

Calculators: Senior Bonus Deduction Calculator , Schedule 1-A Calculator , Roth Conversion Calculator

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Standard deduction , Phase-out

A federal benefit for people who can’t work because of a medical condition expected to last at least 12 months or to result in death, and who have worked long enough under Social Security. Benefits are based on your earnings record, not on financial need.

Calculator: SSDI Back Pay Calculator

See also: Back pay (past-due benefits) , Primary insurance amount (PIA)

A flat amount that reduces your taxable income if you don’t itemize. For 2026 it is $16,100 for single filers and $32,200 for married couples filing jointly, plus an extra amount for each person who is 65 or older or blind.

Calculators: Senior Bonus Deduction Calculator , Schedule 1-A Calculator , Roth Conversion Calculator

See also: Senior deduction

The last day of a credit card’s billing cycle. Your statement balance is calculated that day, and most issuers report it to the credit bureaus around then. The payment due date usually falls 21 to 25 days later.

Calculators: Credit Utilization Calculator , Credit Card Payoff Calculator

See also: Credit utilization ratio , Grace period

The income point — 400% of the federal poverty line — above which Marketplace premium tax credits generally stop entirely. It returned for 2026 after the enhanced credits of 2021–2025 expired, so earning slightly more can cost thousands of dollars in lost help.

Calculator: ACA Subsidy Calculator 2026–2027

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31

See also: Premium tax credit , Federal poverty level (FPL)

A deduction lowers your taxable income, so it saves your marginal tax rate times the deduction. A credit reduces your tax bill dollar for dollar. In the 22% bracket, a $1,000 deduction saves $220, while a $1,000 credit saves $1,000.

Calculators: Schedule 1-A Calculator , Tax Refund Calculator 2026

See also: Marginal tax rate

A tax-deferred account for a child under 18, created by the 2025 tax law. Anyone can contribute up to $5,000 a year combined from July 4, 2026, U.S. citizens born 2025 through 2028 can get a one-time $1,000 Treasury deposit, and from age 18 it follows traditional IRA rules.

Calculator: Trump Account Calculator

See also: Roth conversion

A tax rule that disallows a loss on selling an investment if you buy the same or a substantially identical investment within 30 days before or after the sale. The disallowed loss is added to the cost of the new shares.

Guide: Year-End Tax Checklist for 2026: 10 Moves to Make Before December 31