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Deduction

An amount of money that can be subtracted from your total income before taxes are calculated, which reduces the amount of income you have to pay taxes on.

Overtime Compensation

Extra pay received for working more than a standard number of hours (e.g., 40 hours per week), typically at a rate higher than your usual hourly wage, such as one and a half times the regular rate.

Taxable Year

The accounting period for which taxes are figured; for most individuals, this is the calendar year from January 1 to December 31.

Modified Adjusted Gross Income (MAGI)

A version of your adjusted gross income (your total income minus certain deductions) that has been adjusted for specific tax purposes, often by adding back certain types of income that were originally excluded.

Joint Return

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

Fair Labor Standards Act of 1938 (FLSA)

A federal law that sets basic labor standards for private and public sector employment, including minimum wage, overtime pay eligibility, and child labor rules.

Standard Deduction