Tax Glossary

Tax Glossary

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There are currently 92 Definitions in this directory beginning with the letter F.
Filing statuses
Five taxpayer categories that determine the amount of tax and/or tax credits that apply to different taxpayers. The five filing statuses are (from lowest to highest tax): Married Filing Jointly; Qualifying Widow(er) with Dependent Child; Head of Household; Single; Married Filing Separately.

First-time Homebuyer Credit
The first-time homebuyer credit is a maximum of $8,000 ($4,000 for Married Filing Separately). This is a refundable credit which means that even if the taxpayer does not owe any tax, the money will be refunded to the taxpayer. There are payback provisions if the home was sold within a 36 month period.

Five-Year Test Period Suspension
Taxpayers can choose to have the five-year test period for ownership and use suspended during any period the homeowner (either spouse if married) served on qualified official extended duty as a member of the uniformed services or Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. This means that the taxpayer may be able to meet the two-year use test even if the taxpayer and/or spouse did not actually live in the home during the normal five-year period required of other taxpayers.

Foreign Earned Income Exclusion
The foreign earned income exclusion allows eligible taxpayers to avoid paying federal income tax on their foreign earned income.

Foreign Tax Credit
U.S. tax credit used to offset any foreign income tax taxpayers have paid on qualified income that is also subject to U.S. federal income tax.

Form 1040
Tax return used to report income from wages, salaries, and tips; qualified tuition program earnings; Alaska Permanent Fund dividends; taxable scholarships and fellowship grants; interest of $1,500 or less; and unemployment compensation.

Form 1040 Schedule A
Itemized Deductions

Form 1040 Schedule B
Interest and Ordinary Dividends

Form 1040 Schedule C-EZ
Net Profit from Business

Form 1040 Schedule D
Capital Gains and Losses

Form 1040 Schedule E
Supplemental Income and Loss

Form 1040 Schedule L
Standard Deduction for Certain Filers

Form 1040 Schedule M
Making Work Pay and Government Retiree Credits

Form 1040 Schedule SE
Self-Employment Tax

Form 1040A
Tax return used to report all Form 1040A items, plus all other forms of income.

Form 1040ES
Estimated Tax for Individuals

Form 1040EZ
Tax Return for Single and Joint Filers with No Dependents, used to report income from wages, salaries, and tips, plus income from dividends and interest greater than $1,500; capital gain distributions; IRA, pension, and annuity income; and social security and railroad retirement benefits.

Form 1040NR
U.S. Nonresident Alien Income Tax Return

Form 1040NR-EZ
U.S. Nonresident Alien Income Tax Return

Form 1040X
Amended U.S. Individual Income Tax Return, used to modify a previously filed tax return.

Form 1041 Schedule K-1
Beneficiary's Share of Income, Deductions, Credits, etc. Used by the fiduciary of a domestic decedent's estate, trust, or bankruptcy estate to report income, gains, losses, etc., of the estate or trust.

Form 1042-S
Foreign Person's U.S. Source Income Subject to Withholding

Form 1065 Schedule K-1
Partner's Share of Income, Deductions, Credits, etc. Used by partnerships to report the taxpayers' share of the partnership's income, deductions, credits, etc.

Form 1098
Statement showing Mortgage Interest

Form 1098-E
Statement showing Student Loan Interest

Form 1098-MA
Form 1098-MA, Mortgage Assistance Payments, is a new information return. The form is used to report to the IRS and homeowners the total amounts of certain mortgage assistance payments made to mortgage servicers. Although, mortgage assistance payments are not included in income, taxpayers cannot deduct interest that is paid for them.

Form 1099-A
Acquisition or Abandonment of Secured Property

Form 1099-B
Proceeds From Broker and Barter Exchange Transactions

Form 1099-C
Cancellation of Debt

Form 1099-DIV
Statement showing Dividends and Distributions

Form 1099-G
Statement showing certain government payments (such as Unemployment Compensation Income)

Form 1099-INT
Statement showing Interest Income

Form 1099-K
Form 1099-K is used to report the proceeds of payment card and third party network transactions made to taxpayers under Internal Revenue Code section 6050W. Merchant card and third party network payers, as payment settlement entities (PSE), must report the proceeds of payment card and third party network transactions made to taxpayers on Form 1099-K.

Form 1099-LTC
Long-term Care and Accelerated Death Benefits

Form 1099-MISC
Statement showing miscellaneous income (such as rents, royalties, fishing boat proceeds, non-employee compensation, medical and healthcare payments, substitute payments in lieu of dividends or interest, crop insurance proceeds, gross proceeds paid to an attorney, excess golden parachute payments, and other miscellaneous income)

Form 1099-OID
Statement showing Original Issue Discount

Form 1099-R
Statement showing Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc

Form 1099-S
Proceeds From Real Estate Transactions

Form 1116
Foreign Tax Credit (Individual, Estate or Trust)

Form 1120S Schedule K-1
Shareholder's Share of Income , Deductions, Credits, etc. Used by S corporations to report the taxpayers' share of the corporation's income (reduced by any tax the corporation paid on the income), as well as any deductions, credits, etc.

Form 13614-C
Intake/Interview & Quality Review Sheet

Form 2106
Employee Business Expenses

Form 2106-EZ
Unreimbursed Employee Business Expenses

Form 2120
Multiple Support Declaration, allows taxpayers to identify other eligible individuals who paid over 10% of the support of another person.

Form 2210
Underpayment of Estimated Tax by Individual, Estates and Trusts. While completion of the Form 2210 is out of scope, volunteers need to caution taxpayers they will receive a notice of an estimated tax penalty if it is applicable.

Form 2441
Child and Dependent Care Expenses

Form 2555
Foreign Earned Income Exclusion

Form 2555-EZ
Foreign Earned Income Exclusion

Form 2848
Power of Attorney and Declaration of Representative

Form 3903
Moving Expenses

Form 4137
Social Security and Medicare Tax on Unreported Tip Income, is used to report unreported tip income.

Form 4506
Request for Copy or Transcript of Tax Form

Form 4852
Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA's, Insurance Contracts, Etc., used by taxpayers who have been unable to obtain (or have received incorrect) wage or distribution statements.

Form 4868
Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

Form 4952
Investment Interest Expense Deduction

Form 5329
Additional Taxes on Qualified Plans (including IRAs) and Other Tax Favored Accounts

Form 5405
First-Time Homebuyer Credit

Form 5695
Residential Energy Efficient Property Credit

Form 8233
Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual

Form 8316
Information Regarding Request for Refund of Social Security Tax

Form 8332
Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. This form allows a taxpayer who is a custodial parent (and who was married to his or her child's noncustodial parent) to release his or her claim on the child's exemption.

Form 8379
Injured Spouse Claim and Allocation, allows taxpayers to request relief from a spouse's past due federal debts, including back child support and past due taxes.

Form 843
Claim for Refund and Request for Abatement

Form 8453-OL
Income tax declaration used for e-filing

Form 8582
Passive Activity Loss Limitations

Form 8606
Nondeductible IRAs, reports nondeductible contributions to traditional IRAs and/or distributions taken from certain IRAs. Part I explains in detail when this form is used.

Form 8812
Additional Child Tax Credit

Form 8822
Change of Address

Form 8840
Closer Connection Exception Statement for Aliens

Form 8843
Statement for Exempt Individuals and Individuals with a Medical Condition

Form 8857
Request for Innocent Spouse Relief. This form explains various forms of relief and who may qualify.

Form 8863
Education Credits, may be used instead of Form 2106, Employee Business Expenses, if education expenses were the only business expenses.

Form 8879
IRS e-file Signature Authorization

Form 8880
Credit for Qualified Retirement Savings Contributions

Form 8888
Direct Deposit of Refund to More Than One Account

Form 8901
Information on Qualifying Children Who Are Not Dependents (For Child Tax Credit)

Form 8949
Sales and Other Dispositions of Capital Assets. This form is new in 2010 and used to report capital gains or losses.

Form 9452
Filing Assistance Program, helps taxpayers determine whether they are required to file a federal income tax return.

Form 9465
Installment Agreement Request, used to request a monthly installment plan for taxes owed.

Form 982
Reduction of Tax Attributes Due to Discharge of Indebtedness

Form RRB-1099
Payments by the Railroad Retirement Board

Form RRB-1099-R
Annuities or Pensions by the Railroad Retirement Board

Form SS-5
Application for a Social Security Card.

Form SSA-1099
Social Security Benefit Statement

Form W-2
Wages and Tax Statement, issued by employers to report their employees' earned income for the year. Generally, employers should issue Form W-2 to every employee and a copy to the Social Security Administration.

Form W-2c
Corrected Wage and Tax Statement, used to correct information issued on a W-2.

Form W-4
Employee's Withholding Allowance Certificate is completed by the employee and used by an employer to determine how much to withhold from an employee's paycheck for federal income tax purposes.

Form W-4P
Withholding Certificate for Pension or Annuity Payments. The form allows taxpayers to tell payers the correct amount of federal income tax to withhold from payments.

Form W-4V
Voluntary Withholding Request, filed by taxpayers (or estates) who are recipients of social security benefits and want to request withholding from their payments from the Social Security Administration.

Form W-5
Earned Income Credit Advance Payment Certificate, used by taxpayers who have a qualifying child, may be eligible for the earned income credit, and choose to get advance EIC payments.

Form W-7
Application for IRS Individual Taxpayer Identification Number.

Form W-8BEN
Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding