An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Deduction

An amount subtracted from your total income to reduce the amount of income subject to tax, thereby lowering the overall tax you owe.

Qualified Overtime Compensation

Pay received for working extra hours beyond the standard workweek, specifically defined as overtime compensation under federal labor laws (Fair Labor Standards Act of 1938).

Taxable Year

The annual period (typically January 1 to December 31) for which a taxpayer calculates and files an income tax return.

Modified Adjusted Gross Income (MAGI)

Your total income after certain deductions, with specific additions or exclusions, used to determine eligibility for various tax benefits and programs.

Joint Return

A single income tax return filed by a married couple, combining their incomes, deductions, and credits.

Phase-out

A gradual reduction in the amount of a tax benefit (like a deduction or credit) as a taxpayer's income rises above a certain threshold.

W-2 Form

An annual tax document employers must provide to employees, showing their total wages earned and the amount of taxes withheld during the year.