Tax terminology includes “refundable credit,” “nonrefundable credit,” “adjusted gross income,” and “taxable income.” Another useful pair is the difference between taxable income and gross income. Gross income is everything you earned (wages, interest, business income), while taxable income is what remains after adjustments and deductions. People sometimes forget adjustments like educator expenses or student loan interest (if applicable) that reduce gross income before the standard or itemized deduction. Clarity about these definitions helps when reviewing your tax return and communicating with preparers.