Adjusted Gross Income (AGI):
Your total income from all sources minus certain adjustments (e.g., student loan interest, IRA contributions). It determines your taxable income.

Taxable Income:
The portion of your income subject to tax after deductions and exemptions are applied.

Standard Deduction:
A fixed dollar amount you can subtract from your income to reduce taxable income, based on your filing status.

Itemized Deductions:
Expenses you can deduct individually instead of taking the standard deduction (e.g., medical expenses, mortgage interest).

Tax Credit:
Reduces the actual amount of tax you owe, dollar for dollar (e.g., Child Tax Credit, Earned Income Tax Credit).

Tax Deduction:
Lowers your taxable income, reducing your overall tax liability.

Withholding:
The amount of taxes your employer takes out of your paycheck for federal, state, and local taxes.

Filing Status:
Determines your tax rate and standard deduction based on your situation (e.g., Single, Married Filing Jointly).

Earned Income:
Money you make from working (e.g., wages, tips, self-employment income).

Unearned Income:
Income not from work, such as dividends, interest, or rental income.

Capital Gains:
Profit from selling investments or assets like stocks or property.

Dependent:
Someone you support financially, such as a child or relative, which may qualify you for tax benefits.

Estimated Tax Payments:
Quarterly tax payments made by individuals with income not subject to withholding (e.g., freelancers).

Refund:
Money returned to you if you’ve paid more taxes than you owe.

Tax Extension:
Extra time to file your tax return, though taxes owed must still be paid by the deadline.

Audit:
A review of your tax return by the IRS to verify its accuracy.

Exemption:
A reduction in taxable income for yourself and qualifying dependents (replaced by the increased standard deduction under recent tax law).

Gross Income:
All income before any deductions or adjustments are made.

Tax Year:
The 12-month period for which taxes are calculated, typically January 1–December 31.

FICA Taxes:
Social Security and Medicare taxes withheld from wages.