10 Common Tax Terms Explained in Plain English

Key Insights

Taxes can feel confusing—but they don't have to be.

At our tax relief company, we believe in making complex tax terms simple.

Here are 10 key tax terms you'll likely encounter: Adjusted Gross Income (AGI) – Your total income minus certain deductions.

Taxable Income – The income the IRS uses to calculate your tax.

Standard Deduction – A fixed deduction most taxpayers can claim.

Itemized Deductions – Expenses you can subtract instead of the standard deduction.

Withholding – Money your employer takes from your paycheck for taxes.

W-2 Form – Reports your wages and tax withholdings.

1099 Form – Reports other types of income like freelance or investments.

Tax Credit – A dollar-for-dollar reduction in your tax bill.

Tax Deduction – Reduces your taxable income.

Refund – Money the IRS returns if you overpaid during the year.

We're here to make taxes less intimidating—and more understandable.