A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related Brickyard terms
- Standard DeductionA fixed dollar amount you can subtract from your income without needing to track individual expenses.
- Itemized DeductionListing out specific eligible expenses to subtract from income when they add up to more than the standard deduction.
- Tax CreditA dollar-for-dollar reduction of the tax you owe, making it more valuable than a deduction of the same size.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
- Adjusted Gross Income (AGI)Your total income minus certain adjustments, used as the starting point for figuring out how much tax you owe.
Turn this into a brick
Knowing what Tax Deduction means is knowledge — the first half. A brick gets placed when you act on it.
More in Taxes
Plain-English education — not personalized legal, tax, or investment advice.