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Gross income

All income from any source, unless specifically excluded by law. It's the total income an individual receives before any deductions or exemptions.

Taxable year

The annual accounting period for keeping records and reporting income and expenses. For most individual taxpayers, it's the calendar year (January 1 to December 31).

Internal Revenue Code of 1986

The primary body of tax law in the United States, which outlines all federal tax rules and regulations.

W-2 form

A tax form sent by employers to employees and the IRS. It reports an employee's annual wages and the amount of taxes withheld from their paycheck.

Cost-of-living adjustment

An increase in payment amounts or benefit levels, often tied to inflation, to maintain purchasing power over time.

Qualified holiday bonus

Under this bill, it refers to a holiday, end-of-year, or similar bonus paid by an employer to an employee during January, November, or December, which can be excluded from gross income up to a certain limit.