01/12/2026
โณ Amateurs play to survive. Pros play to win.
In professional golf, players donโt guess where to aim.
They get a pin sheetโexact coordinates for every hole on every green.
Your taxes work the same way.
If you donโt understand the language of taxes, youโre swinging blind.
But when you do know the terms, a financial caddy can help you avoid traps, reduce risk, and improve your return.
Thatโs why we created The Pin Sheet of Essential Tax Termsโa simple, plain-English guide to the tax language every business owner, professional, and entrepreneur should know heading into 2026.
โ Know what AGI really means
โ Understand credits vs deductions
โ Learn which forms actually matter to you
โ Stop overpaying due to confusion
When youโre ready to stop guessing and start playing to win, a Succentrix Fractional CFO is ready to walk the course with you.
๐PIN SHEET OF TERMS
๐ GENERAL TAX TERMS
AGI (Adjusted Gross Income)
Your total income minus certain adjustments (such as student loan interest or IRA contributions). AGI is used to determine eligibility for many tax credits and deductions.
Capital Gains
Profit from selling an asset (stocks, crypto, real estate, etc.).
โข Short-term: Held 1 year or less โ taxed at ordinary income rates
โข Long-term: Held more than 1 year โ taxed at lower capital gains rates
Credit
A dollar-for-dollar reduction of your tax bill.
Example: A $1,000 credit reduces taxes owed by $1,000.
Deduction
Reduces the income you are taxed on.
Example: A $1,000 deduction saves $220 if youโre in the 22% tax bracket.
Estimated Tax
Quarterly tax payments for income not subject to withholding (common for freelancers, self-employed individuals, and business owners).
IP PIN (Identity Protection PIN)
A six-digit number issued by the IRS to protect victims of identity theft and verify their identity when filing a tax return.
๐งพ BUSINESS & EXPENSE TERMS
COGS (Cost of Goods Sold)
Direct costs related to producing goods sold, such as inventory, raw materials, and freight.
EIN (Employer Identification Number)
A nine-digit IRS number used to identify a business for tax purposes (also called a Federal Tax ID).
Schedule C
The tax form used by sole proprietors and single-member LLCs to report business income and expenses.
๐ FORMS & DOCUMENTATION
Form 1098
Reports mortgage interest paid (may include points and insurance premiums).
Form 1098-E
Reports student loan interest paid.
Form 1098-T
Reports tuition payments for higher education.
1099-DIV
Reports dividends and capital gain distributions from investments.
1099-G
Reports government payments such as unemployment benefits or state tax refunds.
1099-INT
Reports interest income from banks and financial institutions.
1099-K
Reports payments received through third-party networks (PayPal, Venmo, Stripe, credit cards).
1099-NEC
Reports non-employee compensation.
โข You receive it if you earned over $600 as a freelancer
โข You issue it if you paid contractors
1099-R
Reports distributions from retirement accounts (IRAs, 401(k)s, pensions, annuities).
SSA-1099
Reports Social Security benefits received.
W-2
Wage and Tax Statement provided by employers to employees.
