1035 exchange
1035 exchange refers to the provision of the US tax code which allows investors to transfer accumulated funds in one more...
http://www.investorglossary.com/1035-exchange.htm
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1099
The 1099 form is the Internal Revenue Service’s tax form used for independent contractors and investors to report income, whether more...
http://www.investorglossary.com/1099.htm
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401(k) Plan
A 401(k) plan is a deferred compensation plan used for retirement. Employers place a specified portion of an employee’s wages more...
http://www.investorglossary.com/401(k)-plan.htm
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403(b) Plan
A 403(b) plan, named for section 403(b) of the Internal Revenue Code, is a retirement savings plan funded by employee more...
http://www.investorglossary.com/403(b)-plan.htm
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457 Plan
Similar to a 401K and a 403B plan and based on section 457 of the Tax Code, a 457 plan more...
http://www.investorglossary.com/457-plan.htm
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Adjusted Gross Income
Adjusted gross income is the amount of income used on IRS Form 1040 to calculate a person’s income tax liability. more...
http://www.investorglossary.com/adjusted-gross-income.htm
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Alternative Minimum Tax
The US Congress introduced alternative minimum tax (AMT) in 1970 to prevent high-income taxpayers from lowering their tax liability through more...
http://www.investorglossary.com/alternative-minimum-tax.htm
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average price per share
The average price per share is determined by dividing the cost of acquiring the shares by the number of shares more...
http://www.investorglossary.com/average-price-per-share.htm
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back taxes
Back taxes are taxes owed for years prior to the current tax year. Back taxes are generally considered past more...
http://www.investorglossary.com/back-taxes.htm
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before-tax income
Before-tax income, also known as pretax income, is the amount of income the company has generated before it pays Federal, more...
http://www.investorglossary.com/before-tax-income.htm
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capital gain
A capital gain is an increase in the value of an asset above its purchase price. Capital gains have special more...
http://www.investorglossary.com/capital-gain.htm
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capital gains tax
Capital gains are subject to capital gains tax. A capital gain is the profit earned by selling capital assets (stocks, more...
http://www.investorglossary.com/capital-gains-tax.htm
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child and dependent care credit
The child and dependent care credit is a federal income tax credit. The child and dependent care credit is available more...
http://www.investorglossary.com/child-and-dependent-care-credit.htm
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cost basis
Cost basis reflects the true cost of purchasing a financial asset held over an extended period of time. The longer more...
http://www.investorglossary.com/cost-basis.htm
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Coverdell Education Savings Account
Formerly called the education IRA, the Coverdell education savings account is an investment plan used for funding a child’s college more...
http://www.investorglossary.com/coverdell-education-savings-account.htm
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deferred tax
Deferred tax represents a company's liability for taxes owed that is postponed to future periods. Deferred tax is primarily more...
http://www.investorglossary.com/deferred-tax.htm
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dependent
The term dependent generally describes a person who is financially sustained by someone else. Most commonly, the word dependent applies more...
http://www.investorglossary.com/dependent.htm
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direct deposit
Direct deposit is a program in which a payment is deposited directly into a savings, checking, or brokerage account. more...
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disposable income
Disposable income is money that can be spent, saved, invested or otherwise disposed of after taxes and certain other obligations more...
http://www.investorglossary.com/disposable-income.htm
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dividend
A dividend is a payment by a corporation to its shareholders. Dividend payment may come in different forms, such as more...
http://www.investorglossary.com/dividend.htm
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double taxation
Double taxation occurs when a government taxes the same income more than once. Unfortunately there are many forms of double more...
http://www.investorglossary.com/double-taxation.htm
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duty
In international trade, a customs duty, or tariff, is a tax on the import or export of specific goods. more...
http://www.investorglossary.com/duty.htm
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early withdrawal penalty
An early withdrawal penalty is a fine levied on funds removed from an investment before they are allowed to be more...
http://www.investorglossary.com/early-withdrawal-penalty.htm
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earned income tax credit
The earned income tax credit (EITC) is a tax refund program geared toward low-income workers. The earned income tax credit more...
http://www.investorglossary.com/earned-income-tax-credit.htm
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effective tax rate
The effective tax rate for an individual is usually the ratio of taxes to adjusted gross income. The effective tax more...
http://www.investorglossary.com/effective-tax-rate.htm
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Employee Stock Ownership Plan
Employee stock ownership plan (ESOP), also known as stock purchase plan, is a program designed to promote purchasing of company more...
http://www.investorglossary.com/employee-stock-ownership-plan.htm
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enterprise zone
Enterprise zone is a specially designated area within which businesses are granted numerous advantages. Enterprise zone is commonly associated with more...
http://www.investorglossary.com/enterprise-zone.htm
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escrow
In contract law, escrow is a legal arrangement whereby an asset is held by a third party, called the escrow more...
http://www.investorglossary.com/escrow.htm
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estate tax
The estate tax is simply a tax on assets charged by the government at one’s death, less liabilities. The total more...
http://www.investorglossary.com/estate-tax.htm
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estimated tax
Estimated tax is tax that a self-employed individual or a company must estimate and pay to the Internal Revenue Service. more...
http://www.investorglossary.com/estimated-tax.htm
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flat tax
A flat tax system has a fixed tax rate regardless of level of income. The primary advantage of a more...
http://www.investorglossary.com/flat-tax.htm
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gift tax
The gift tax is a US tax levied on gifts above a certain value. The donor, not the recipient, more...
http://www.investorglossary.com/gift-tax.htm
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in escrow
An item of value is in escrow when that item is transferred to a third party (an escrow agent) for more...
http://www.investorglossary.com/in-escrow.htm
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income tax
Income tax is tax levied against personal income or a business entity’s net profits. In the United States, the more...
http://www.investorglossary.com/income-tax.htm
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individual tax return
An individual tax return is a tax return filed by an individual person rather than a business entity. An more...
http://www.investorglossary.com/individual-tax-return.htm
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inheritance tax
The inheritance tax is tax imposed on the heirs of the estate upon the transfer of assets from the deceased more...
http://www.investorglossary.com/inheritance-tax.htm
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interest deduction
An interest deduction is any deduction of interest payments that one can take on one’s IRS 1040 form as a more...
http://www.investorglossary.com/interest-deduction.htm
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Internal Revenue Service
The Internal Revenue Service is the branch of the US federal government that is charged with the assessment and collection more...
http://www.investorglossary.com/internal-revenue-service.htm
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IRA
An IRA - Individual Retirement Account - is a tax-sheltered investment account available to US taxpayers. Contributions to an IRA more...
http://www.investorglossary.com/ira.htm
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IRA rollover
An IRA rollover is a lump-sum distribution deposited from an existing retirement plan into an individual retirement account. The existing more...
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itemized deduction
An itemized deduction is a deduction listed separately against a taxpayer’s adjusted gross income on his tax return. An itemized more...
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joint tax return
A joint tax return is one tax return filed by a married couple on which the couple’s income and deductions more...
http://www.investorglossary.com/joint-tax-return.htm
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Limited Liability Company
A limited liability company (LLC) is a corporate arrangement that offers the shareholders of the company, limited liability with respect more...
http://www.investorglossary.com/limited-liability-company.htm
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luxury tax
A luxury tax is a tax on luxury goods. The luxury tax can be levied on any luxury item, with more...
http://www.investorglossary.com/luxury-tax.htm
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married filing jointly
Married filing jointly is the tax filing term for a married couple filing a single tax return. This means that more...
http://www.investorglossary.com/married-filing-jointly.htm
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married filing separately
Married filing separately is a tax filing status under which a married couple files a separate tax return for each more...
http://www.investorglossary.com/married-filing-separately.htm
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mortgage interest deduction
In US federal taxation, the mortgage interest deduction is a deduction against gross income for interest paid on debt secured more...
http://www.investorglossary.com/mortgage-interest-deduction.htm
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personal exemption
The personal exemption is a dollar amount excluded from taxable income on one’s income tax return. The personal exemption represents more...
http://www.investorglossary.com/personal-exemption.htm
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phantom income
Phantom income is any income that is reportable as taxable income but that does not generate cash flow for the more...
http://www.investorglossary.com/phantom-income.htm
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progressive tax
A progressive tax levies higher taxes on those of greater means. The US income tax was once a very more...
http://www.investorglossary.com/progressive-tax.htm
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qualified retirement plan
A qualified retirement plan meets the requirements of the IRS code section 401(a) and the ERISA and therefore receives favorable more...
http://www.investorglossary.com/qualified-retirement-plan.htm
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Roth IRA
A Roth IRA - Individual Retirement Account - is a tax-sheltered investment account available to US taxpayers. Contributions to a more...
http://www.investorglossary.com/roth-ira.htm
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unearned income
Unearned income is any income that comes from sources other than employment (work). Examples of unearned income include interest from more...
http://www.investorglossary.com/unearned-income.htm
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Value Added Tax
A value added tax is sometimes referred to as VAT. A value added tax is added to the price of more...
http://www.investorglossary.com/value-added-tax.htm
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wash sale rule
The wash sale rule is an IRS rule that prohibits investors from claiming a tax loss on the sale of more...
http://www.investorglossary.com/wash-sale-rule.htm
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withholding tax
A withholding tax is a tax automatically taken from income received during the year. Individuals paying too much withholding more...
http://www.investorglossary.com/withholding-tax.htm
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