Top 10 important words and phrases for Tax Accountant

Top 10 important words and phrases for Tax Accountant Introduction to Tax Terminology Hello everyone! Welcome to our video on the top 10 important words and phrases for tax accountants. Taxes can be complex, and having a solid grasp of the terminology is crucial. Let's dive in! 1. Adjusted Gross Income (AGI) AGI is a key figure in tax calculations. It's your total income after certain deductions. AGI determines your eligibility for various tax benefits and credits. 2. Itemized Deductions Itemized deductions are specific expenses you can subtract from your taxable income. Examples include mortgage interest, medical expenses, and charitable contributions. 3. Tax Credit vs. Tax Deduction While both reduce your tax liability, a tax credit directly reduces the amount you owe, while a tax deduction reduces your taxable income. 4. Capital Gains