Glossary

The Alternative Minimum Tax (AMT) is a separate tax system designed to ensure high-income earners pay their fair share. It can sometimes complicate tax planning, so understanding it is key.

An amended tax return is a special form you use to fix mistakes or make changes on a tax return you've already filed. It's a way to ensure your taxes are accurate and you get the correct refund or pay what you owe.

The capital gains exclusion on a home sale allows many homeowners to avoid paying taxes on some or all of the profit from selling their primary residence. This can result in significant tax savings.

The charitable contribution deduction allows you to reduce your taxable income by deducting donations you make to qualifying charities. This encourages charitable giving and can lower your tax burden.

The Child Tax Credit is a tax benefit for families with qualifying children, designed to reduce their tax burden. It can offer significant financial help.

The corporate tax rate is the percentage of a company's profits that it pays in taxes to the government. It’s a crucial factor impacting a business's profitability and financial planning.

A Dependent Care FSA is a special savings account that lets you set aside pre-tax money to pay for eligible childcare expenses. It's a great way to reduce your tax bill while managing the costs of looking after your kids.

Letter 3217C is an important notice from the IRS related to proposed changes to your tax return. It's essential to understand what it means and respond appropriately.

A CP16 notice from the IRS usually means there's a slight change to your tax account, often relating to a tax return adjustment. It's important to understand why you received it and what steps, if any, you need to take.

A CP18 Notice from the IRS usually indicates an issue with your tax return, specifically related to math errors or missing payments. It's crucial to understand what it means and how to respond correctly.