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Individual TaxTax Glossary
What Is “Tax deduction”?
A tax deduction is an eligible expense or a government-approved dollar amount that you can subtract from your gross income...
Individual TaxTax Glossary
What Is “Adjustment to income”?
An adjustment to income is an expense you can subtract directly from your total gross income to calculate your Adjusted...
Individual TaxTax Glossary
What Is “Above-the-line deduction”?
An above-the-line deduction is a tax deduction you can claim to lower your Adjusted Gross Income (AGI) before you choose...
Individual TaxTax Glossary
What Is “Itemized deductions”?
Itemized deductions are eligible personal expenses that the IRS allows you to list individually on your tax return to reduce...
Individual TaxTax Glossary
What Is “Standard deduction”?
The standard deduction is a fixed dollar amount that the IRS allows you to subtract from your income to reduce...
Individual TaxTax Glossary
What Is “Progressive tax system”?
A progressive tax system is a tax structure where the tax rate increases as a taxpayer’s taxable income increases. Under...
Individual TaxTax Glossary
What Is “Effective tax rate”?
Your effective tax rate is the actual average percentage of your income that you pay in taxes. It is calculated...
Individual TaxTax Glossary
What Is “Marginal tax rate”?
Your marginal tax rate is the tax rate applied to the very last dollar of your taxable income. Because the...
Individual TaxTax Glossary
What Is “Tax bracket”?
A tax bracket is a range of taxable income that is subject to a specific tax rate under a progressive...
Individual TaxTax Glossary
What Is “Balance due”?
A balance due is the amount of tax you still owe to the IRS or a state tax authority after...