Common words

 Is a tax document used in the US to determine how much federal income tax should be withheld from an employee's paycheck 

Are specific expenses or items that taxpayers can subtract from their taxable income, reducing the amount of income subject to federal income tax. Common federal tax deductions for individuals include the standard deduction, itemized deductions (e.g., medical expenses, mortgage interest, charitable contributions), student loan interest, and retirement contributions. Deductions help lower overall tax liability, resulting in potential tax savings for taxpayers.

 Are specific expenses or items that taxpayers can subtract from their state taxable income to lower their state income tax liability. These deductions vary by state and may include items like state income taxes paid, property taxes, and contributions to state-sponsored savings or retirement plans.

Stands for Health Savings Account. It's a tax-advantaged savings account for individuals with high-deductible health insurance plans. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Funds can be rolled over, and the account is portable.

Stands for Flexible Spending Account. It's a tax-advantaged savings account for medical and dependent care expenses. Contributions are made pre-tax, but unused funds may be forfeited at the end of the plan year.

Is a subsidy provided by the government to help eligible individuals and families afford health insurance coverage purchased through the Health Insurance Marketplace. The PTC is part of the Affordable Care Act (ACA), also known as Obamacare, and its purpose is to make health insurance more affordable for lower and moderate-income households.