Adam Greene of Melville, NY: Tax Terms Decoded
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Transcript of Adam Greene of Melville, NY: Tax Terms Decoded
Adam Greene is a partner and CPA at
Greene & Company, LLP, in Melville, NY.
The accounting firm has served clients in
the construction industry for more than
25 years. Mr. Greene outlines a few
important tax terms.
-- Tax deduction. A deduction is an expense you paid during the tax year that can be subtracted from your income before paying taxes. It could be a charitable donation, a job-related cost, property taxes on your home, or something else. You have the option to take a standard deduction offered by Congress or an itemized deduction, in which you list all deductions and provide records and receipts for each.
-- Tax exemption. An exemption is a particular amount of money that is taken away from your taxable income, meaning you won't have to pay taxes on it. If you are single and don't have children, you are eligible for a personal tax exemption. You can also claim dependent tax exemptions for children or relatives who are under your financial care. Income restrictions apply to exemptions.
-- Withholding allowances. Each time
you receive a paycheck, your employer
withholds money for tax purposes. To
adjust how much is withheld each pay
period, you can adjust your W-4 form.
Adam Greene suggests speaking with an
accountant if you have questions about
tax planning and preparation.