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Glossary entry · The silent subtractors
Standard Deduction (US)
Definition
A fixed reduction to taxable income that most US taxpayers claim instead of itemizing deductions. For a single filer in 2024 it is $14,600. Income up to that amount is effectively shielded from federal income tax.
Example
A $50,000 single filer is taxed federally on $35,400 ($50,000 − $14,600 standard deduction), not on the full $50,000.
Related
The silent subtractors
Fee
A charge taken from your investment by a fund, broker, or advisor, every year, forever.
Read →Tax
The other silent subtractor. Almost every gain you make is taxed somewhere.
Read →Expense ratio
The annual fee a fund charges, expressed as a percentage of your investment.
Read →Commission
A fee charged by a broker each time you buy or sell. Mostly $0 with modern brokers.
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