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Important Tax Terms You Should Know

Important Tax Terms You Should Know

According to a recent survey, there are a large number of Americans who aren’t familiar with some of the most common terms related to taxes. Some of this may be due to the fact that they use professional tax filing services in Jersey City who take care of everything for them.

However, it is a good idea for everyone to get to know some of the most common phrases and terms, which are found here.

Standard Deduction

This is the total dollar amount that will reduce the amount of taxed income. It is based on your actual filing status. A standard deduction is used instead of itemized deductions. You won’t be allowed to use both of these. The standard deductions for Americans are set by the federal government and can change slightly from one year to the next.

Exemptions

The exemption is something that is similar to a dedication as it will reduce the amount of taxed income that you have. An exemption is related to you or to your spouse, child or another qualifying family member. The professional you use to help you with tax filing services in Jersey City can help you better understand what exemptions you are entitled to receive.

Tax Credits

There are several different tax credits that are available to taxpayers. These are categorized into nonrefundable and refundable credits and will be subtracted from the amount of taxes that you owe.

If you have questions about tax terms, then it is a good idea to work with professional tax filing services in Jersey City. The professionals can help you better understand important terms and how they affect your filing.

Learn more about filing your taxes and common terms used by visiting the WorkMyTaxes website.

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