Tax Glossary

Taxpayers may be able to claim a nonbusiness energy property credit for certain energy efficient property or improvements.

Traditional IRA contributions that taxpayers may not deduct from their total income because the taxpayers do not meet the requirements; also includes remaining contributions from a partial IRA deduction.

Nonrecourse debt is satisfied by the surrender of the secured property regardless of the fair market value (FMV) at the time of surrender and the borrower is not personally liable for the debt. If property subject to nonrecourse debt is abandoned, foreclosed upon, subject of a short sale, or repossessed by the lender, the circumstances will be treated as a sale of the property by the taxpayer.

A nonrefundable credit can only reduce the tax liability to zero. Any excess credit is not refunded to the taxpayer.

A residency status of an individual who does not meet the Green Card Test or the Substantial Presence Test,

Any income exempt from federal income tax. Although some types of nontaxable income are reported on the return, it is not added into the amount of income subject to tax.