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Tax Glossary
What Is “Adjustment to income”?
An adjustment to income is a specific type of tax deduction that lowers your total gross income before your Adjusted...
Tax Glossary
What Is “Additional Child Tax Credit”?
What Is “Additional Child Tax Credit”? The Additional Child Tax Credit (ACTC) is the refundable portion of the standard Child...
Tax Glossary
What Is “Actual expense method”?
The actual expense method is a way for business owners and self-employed individuals to calculate their deductible vehicle expenses. Instead...
Tax Glossary
What Is “ACTC”?
What Is “ACTC”? ACTC stands for the Additional Child Tax Credit. It is the refundable portion of the standard Child...
Tax Glossary
What Is “Above-the-line deduction”?
An above-the-line deduction is a tax write-off that you subtract from your total gross income to calculate your Adjusted Gross...
Tax Glossary
What Is a “401(k) Distribution”?
401(k) Distribution: A Simple Guide to Withdrawing Retirement Funds A 401(k) distribution is any withdrawal of money or assets from...
Tax GlossaryIndividual Tax
What Is a “Nonrefundable tax credit”?
A nonrefundable tax credit is a tax incentive that allows you to reduce your federal income tax liability down to...
Tax GlossaryIndividual Tax
What Is a “Refundable tax credit”?
A refundable tax credit is a type of tax benefit that can reduce your tax liability to zero and allow...
Tax GlossaryIndividual Tax
What Is a Tax Credit?
A tax credit is a dollar-for-dollar reduction of the actual income tax you owe to the IRS. Unlike a deduction,...
Tax GlossaryIndividual Tax
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...