Related Words

Adjusted Gross Income (AGI): Your AGI is your gross, or total, income from taxable sources minus certain deductions. Income includes salary and other employment income, interest and dividends, and long- and short-term c . . . View Full Definition

Modified Adjusted Gross Income (MAGI): Your modified adjusted gross income (MAGI) is your adjusted gross income (AGI) plus deductions, such as college loan interest and contributions to a deductible individual retirement account . . . View Full Definition

Monthly Income Preferred Security (MIP): Preferred stock issued by a subsidiary located in a tax haven. The subsidiary relends the money to the parent.

Multiple-Step Income Statement (Multi-Step): An income statement (Profit and Loss ) which has had its revenue section split up into sub-sections in order to give a more detailed view of its sales operations. Example: a company sells se . . . View Full Definition

Maximizing Income: Increasing the amount of income you earn.

Loss-Of-Income Insurance: Insurance coverage that will pay out income that a policyholder loses as a result of a disability, injury, or business disruption.

Income Taxes Payable: The amount expected to be paid to the federal and state governments based on the income before taxes reported on t he income statement.

Inflation-Adjusted Return: Inflation-adjusted return is what you earn on an investment after accounting for the impact of inflation. For example, if you earn 7% on a bond during a period when the inflation rate averag . . . View Full Definition

Interest Income: Interest expense is the money the corporation or individual pays out in interest on loans.

Investment Income: Investment income — sometimes called unearned income — is the money that you collect from your investments. It may include stock dividends, mutual fund distributions, and interest from CDs, . . . View Full Definition