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.