wikiHow Glossary of Tax Terms * Adjusted Gross Income (AGI) - The amount of income earned by an individual after certain deductions are taken into account. * Taxable Income - The portion of an individual's income that is subject to federal income tax. * Tax Deduction - An expense that can be subtracted from an individual's taxable income, reducing the amount of tax owed. * Tax Credit - An amount of money that can be subtracted directly from an individual's tax liability, reducing the amount of tax owed. * Standard Deduction - A fixed amount that can be deducted from an individual's taxable income, reducing the amount of tax owed. * Itemized Deduction - A list of individual expenses that can be deducted from an individual's taxable income, often exceeding the amount of the standard deduction. * Tax Bracket - A range of income levels that are subject to a specific tax rate. * Marginal Tax Rate - The tax rate applied to the last dollar earned by an individual, which is typically higher than the average tax rate. * Dependent - A person who is financially supported by another individual, such as a child or elderly parent. * Filing Status - A classification that determines the tax rates and deductions available to an individual, such as single, married filing jointly, or head of household. * Tax Return - A document filed with the IRS that reports an individual's income, deductions, and tax liability for a given tax year. * Tax Withholding - The amount of money that an employer withholds from an employee's paycheck to cover federal income tax. * Estimated Tax - The amount of tax that self-employed individuals and businesses are required to pay throughout the year based on their expected income. * Form W-2 - A form provided by an employer that summarizes an employee's earnings, tax withholding, and other payroll information for the year. * Form 1099 - A form provided by an employer or other entity that reports income paid to an individual for non-employee work, such as freelance or contract work. * IRA - Individual Retirement Account, a type of investment account that offers tax advantages for retirement savings. * Capital Gains - The profit earned from selling an investment for more than its purchase price. * Deductible IRA - A type of IRA that allows individuals to deduct contributions from their taxable income. * Tax Audit - A review of an individual's tax returns and financial records by the IRS to ensure accuracy and compliance with tax laws. * Tax Preparation Software - Software programs designed to help individuals prepare and file their tax returns electronically. Note: This is a basic list, and there may be additional terms and concepts related to doing your own taxes that may be relevant depending on your specific situation. Page