Common Definitions

Single - A person that is filing alone with no dependents and is not married

Head of Household - A person that takes care of either a child or disabled relative or full-time relative student who does not support themselves more than 6 months out of the year or 50% of their income

Married Filing Jointly - A couple that are legally married and file their taxes together

Married Filing Separately - A married person that chooses not to file with their spouse for financial or other reasons such as child support or are legally separated

Deduction - Reduces your taxable income and your tax bill, not dollar for dollar, ex. charitable contributions, medical expenses

Tax Credit - Applied directly to your tax bill and reduces it dollar for dollar, ex. Earned Income Credit

Exemption - Frequently confused with deduction, an exemption allows you to reduce your taxable income, ex. claiming yourself or your dependent on the W-4 form