Tax season can feel like navigating a maze of complicated terms and forms. But what if we told you it doesn’t have to be? Understanding the language of taxes is the first step to confidently managing your finances and maximizing your potential refund. That’s why we’ve put together this post to walk you through our comprehensive Tax Refund Glossary!
Think of our glossary as your personal tax whisperer, translating all that baffling terminology into plain English. Whether you’re a seasoned filer or new to the tax game, you’ll find everything you need to know right here. Let’s dive into some of the most common—and often confusing—terms you’ll encounter.
Glossary of Tax Terms
Trying to understand tax terms? Feel free to scroll through our Glossary of Tax Terms with simplified definitions and learn more about the most common tax terminology.
| Term / Slang | Full Meaning |
|---|---|
| AA/B | Above-the-Brand: Internet slang referring to a tax situation where income is significantly above the average for similar taxpayers, sometimes triggering an audit. |
| AACAA | Affordable Care Act: Legislation that includes various health-related tax provisions and credits. |
| Accelerated Depreciation | A method of depreciation that allows a business to deduct a greater portion of an asset’s cost earlier in its life. |
| ACRS | Accelerated Cost Recovery System: A pre-1987 system for calculating depreciation. |
| Actual Expenses | The method of calculating business deductions (like auto use) by tracking and deducting every single expense, as opposed to using the standard rate. |
| Additional CTC | Additional Child Tax Credit: The refundable portion of the Child Tax Credit. |
| Adjusted Gross Income (AGI) | Total income minus IRS-allowed adjustments (student loan interest, educator expenses, IRA contributions, etc.). |
| Adjustments to Income | Deductions taken before arriving at AGI (often called “Above-the-Line” deductions). |
| Ad Valorem | Latin for “according to value,” typically used to describe property taxes. |
| Advance Payments (of Credit) | Payments of a refundable credit (like the Child Tax Credit or Premium Tax Credit) that were sent to the taxpayer before they filed their tax return for that year. |
| AGI | Adjusted Gross Income: Gross income minus “above-the-line” deductions. A key number for determining eligibility for other tax breaks. |
| Amended Return (Form 1040-X) | A corrected version of a tax return previously filed with the IRS. |
| AMT | Alternative Minimum Tax: A parallel tax calculation intended to ensure high-income taxpayers pay a minimum amount of tax, regardless of deductions. |
| Amount Due | The total tax the taxpayer must pay to the government because withholding/estimated taxes were insufficient. (The opposite of a Refund). |
| Annual Exclusion (Gift Tax) | The amount you can give to any one person during the year without having to file a gift tax return. |
| AOTC | American Opportunity Tax Credit: A partially refundable education credit for qualified higher education expenses. |
| AP/AR | Accounts Payable / Accounts Receivable: Common accounting terms for money a business owes or is owed. |
| Appeal (Tax) | The process of requesting a review of an IRS decision, usually after an audit or receiving a Notice of Deficiency. |
| As Of Date | The date interest and penalties are calculated through on your IRS account transcript. |
| Asset | Anything a taxpayer or business owns that has economic value (e.g., cash, property, equipment, investments). |
| Assessment | The official recording of your tax liability by the IRS. |
| Audit | A review of your return by the IRS to verify accuracy. |
| Automated Collection System (ACS) | IRS division that handles overdue tax debts. |
| Automatic Extension | Six-month filing extension (to October 15) when Form 4868 is filed. |
| Balance Due | Amount still owed after payments and credits (Same as Amount Due). |
| Backup Withholding | 24% federal withholding when a taxpayer doesn’t supply a correct TIN. |
| Bank Account Verification | IRS validation before issuing direct-deposit refunds. |
| Basis | The amount you paid for an asset, used to determine capital gain or loss. |
| Below-the-Line | Deductions that are taken after AGI is calculated, meaning they are either the Standard Deduction or Itemized Deductions. |
| BFS | Bureau of the Fiscal Service: The government entity that actually issues federal tax refunds, often responsible for intercepting a refund to cover federal or state debts (Offset). |
| Bonus Depreciation | A provision that allows a business to immediately deduct a large percentage (or 100%) of the cost of eligible property in the year it’s placed in service. |
| Bracket | A Tax Bracket. A range of income taxed at a specific marginal rate. |
| Bulk Filer | Internet slang for taxpayers who file their returns very early in the year, often due to reliance on the EITC or ACTC. |
| Business Income | Income from self-employment or business operations. |
| Bypass Refund | An Offset Bypass Refund (OBR) is a rare, manually processed refund that a taxpayer may receive if their refund was intercepted for a debt but they had jointly-filed with an injured spouse. |
| Capital Asset | Almost any property held for investment or personal use (e.g., stocks, bonds, home, furniture). |
| Capital Gain/Loss | Profit/loss from the sale of a Capital Asset. Long-term (held over a year) is taxed at special lower rates. |
| Carryback/Carryover | Applying an excess tax benefit (like a loss or credit) to a prior tax year (Carryback) or a future tax year (Carryover). |
| CBO | Congressional Budget Office: Non-partisan federal agency that scores tax legislation. |
| CDP | Collection Due Process: A formal procedure allowing a taxpayer to challenge an IRS levy or lien. |
| Charitable Contribution | A gift of cash or property to a qualified charity for which a taxpayer can claim an itemized deduction. |
| Check-Off | A provision on the tax return that allows a taxpayer to designate a portion of their refund to a specific cause (e.g., presidential election campaign fund). |
| Child Tax Credit (CTC) | Credit for qualifying children under 17; may be refundable. |
| Claim Offset | Refund used to pay past-due federal or state debts. |
| Claiming Dependents | The process of legally qualifying and reporting a person on your return to obtain certain tax benefits (like the CTC). |
| Collection Due Process (CDP) | A hearing request to contest IRS collection actions. |
| Community Property | Income shared equally between spouses in certain states. |
| COGS | Cost Of Goods Sold: The direct costs attributable to the production of the goods sold by a business. |
| Correction Notice | An IRS notice informing the taxpayer that the IRS changed an amount on their return (e.g., math error or missing form), which often results in a different refund/amount due. |
| Cost Basis | Original cost of property plus improvements minus depreciation. |
| CPA | Certified Public Accountant: A licensed accounting professional who can prepare taxes and represent clients before the IRS. |
| Credit | A dollar-for-dollar reduction of Tax Liability. |
| CTC | Child Tax Credit: A tax credit for taxpayers with qualifying children. Partially or fully refundable. |
| Cycle Code | The eight-digit number on a transcript showing when your return was processed. |
| Data Retrieval Tool (DRT) | IRS system allowing FAFSA users to import tax info. |
| Date of Notice | The specific date printed on an IRS letter or notice, which is important for determining response deadlines. |
| Debit Card Refund | Refund issued on a prepaid card when a bank account isn’t available. |
| Deduction | An amount that reduces a taxpayer’s Taxable Income. |
| Deficiency | The amount of tax owed when a taxpayer’s correct tax liability is greater than the amount shown on their return (often assessed after an audit). |
| Dependent | A qualifying child or relative who entitles you to credits or deductions. |
| Depreciation | An income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over its useful life. |
| Direct Deposit | The electronic transfer of a refund into your bank account. |
| Direct Tax | A tax levied on income or profits paid directly to the government by the person it’s imposed on (e.g., income tax). |
| Disallowed | A deduction or credit that the IRS has determined the taxpayer is not legally entitled to claim, often resulting in a change to the refund/amount due. |
| Disallowed Credit | Credit denied by the IRS due to ineligibility or error. |
| Disaster Loss | A deduction for losses of property due to a federally declared disaster. |
| Disposable Income | Remaining income after required deductions. |
| Earned Income Credit (EIC) | Refundable credit for low- to moderate-income workers. |
| E-File | The electronic filing of a tax return, which speeds up processing and refunds. |
| EFTPS | Electronic Federal Tax Payment System: A free service from the U.S. Treasury to pay federal taxes online or by phone. |
| EIN | Employer Identification Number: A unique nine-digit number assigned by the IRS to business entities. |
| EIP | Economic Impact Payment: Official term for the stimulus checks issued during the pandemic. |
| EITC (or EIC) | Earned Income Tax Credit: A major Refundable Credit for low-to-moderate-income working individuals and families. |
| Electronic Filing (E-File) | Submitting your tax return online to the IRS. |
| Electronic Filing PIN | Identifier used for IRS e-filing authentication. |
| ERO | Electronic Return Originator: A tax preparer or software that submits returns electronically to the IRS. |
| ERC | Employee Retention Credit: A refundable payroll tax credit available to businesses that were affected by COVID-19. |
| ESA | Education Savings Account (e.g., Coverdell ESA): A tax-advantaged account used for educational expenses. |
| Estimated Tax Payment | Quarterly payments for income not subject to withholding. |
| Estimated Tax | Quarterly payments of income tax and self-employment tax made by self-employed or other individuals who don’t have enough withholding. |
| Exclusion | Income that is specifically exempt from taxation (e.g., municipal bond interest). |
| Exemption | An amount subtracted from income to reduce taxable income (currently suspended for federal income tax). |
| Exemptions | Amounts reducing taxable income (phased out after 2018 TCJA). |
| Extension (to File) | A request to the IRS (Form 4868) for more time to file your return (does not extend the time to pay tax due). |
| Failure-to-File Penalty | Penalty for not filing a return by the due date. |
| Failure-to-Pay Penalty | Penalty for not paying taxes owed on time. |
| FICA | Federal Insurance Contributions Act: The federal law that requires withholding for Social Security and Medicare taxes. |
| Filing Status | Your IRS category (single, married filing jointly, etc.). |
| Filing Status | Determines your tax rate and standard deduction (e.g., Single, Head of Household). Changing this often requires filing an Amended Return. |
| First-Time Homebuyer Credit | A refundable credit that was available for taxpayers who purchased a home in specific prior years. |
| Fiscal Year | A 12-month accounting period other than the calendar year. |
| Flat Tax | A tax system where the tax rate is constant (proportional) across all income levels. |
| Form 1040 | The official U.S. Individual Income Tax Return. |
| Form 1040-X | The official form used to file an Amended Return. |
| Form 4868 | Application for an automatic filing extension. |
| Form W-2 | Wage statement employers issue to employees. |
| Form 1099 | Report of various non-wage payments. |
| Form W-2 | The statement an employer must provide detailing your wages and the taxes withheld during the year. |
| Fraud Flag | An internal IRS indicator that a return has characteristics of potential fraud, leading to refund delays (often involves EITC claims). |
| FTC | Foreign Tax Credit: A credit for income taxes paid to a foreign country. |
| Garnishment | Legal withholding of wages to satisfy a tax debt. |
| Gift Tax | Tax on money or property given without receiving value in return. |
| Grantor Trust | A trust where the grantor retains control and pays the tax. |
| Gross Income | All income before deductions or credits. |
| Gross Income | The starting point for calculating tax, including all income from all sources not specifically excluded by law. |
| Gross Receipts | The total amount of money a business received from all sales and services, before subtracting any costs or expenses. |
| Head of Household | Filing status for unmarried taxpayers supporting dependents. |
| Health Savings Account (HSA) | Tax-advantaged account for medical expenses. |
| HOH | Head of Household: A favorable Filing Status for unmarried individuals who pay for more than half the cost of maintaining a home for a qualifying person. |
| Holding Period | Time you own an asset before selling it. |
| Home Office Deduction | Deduction for part of a home used for business. |
| HSA | Health Savings Account: A tax-advantaged savings account paired with a high-deductible health plan. |
| IA | Installment Agreement: An agreement with the IRS to make monthly payments on a tax debt. |
| ID Theft | Identity Theft: A situation where a criminal uses a taxpayer’s SSN to file a fraudulent tax return and claim a refund, which can severely delay the legitimate taxpayer’s refund. |
| Identity Theft PIN (IP PIN) | Six-digit code preventing someone from filing a fraudulent return in your name. |
| Injured Spouse Claim | Protects one spouse’s portion of a joint refund from being applied to the other spouse’s debt. |
| Injured Spouse | A taxpayer who filed a joint return and whose portion of a Refund was (or may be) taken to pay their spouse’s separate past-due debt (e.g., child support, student loan). Requires Form 8379. |
| Installment Agreement | Payment plan with the IRS for outstanding balances. |
| Installment Agreement | See IA. |
| Interest Income | Taxable earnings from savings or investments. |
| Interest Income | Income earned from bank accounts, loans, or bonds, reported on Form 1099-INT. |
| Internal Revenue Code (IRC) | Federal tax law of the United States. |
| IRAC | Internal Revenue Advisor Center: An IRS call center. |
| IRA | Individual Retirement Arrangement: A retirement savings vehicle with tax advantages. |
| IRS | Internal Revenue Service: The U.S. federal tax authority. |
| IRS Refund Schedule | Internet slang for the estimated timeline or calendar when the IRS is expected to issue refunds, usually shared in online forums. |
| Itemized Deductions | Specific expenses (e.g., medical, state/local taxes, mortgage interest) that can be subtracted from AGI instead of the Standard Deduction. |
| ITIN | Individual Taxpayer Identification Number: A tax processing number issued by the IRS to certain non-citizens who cannot get an SSN. |
| J&S Liability | Joint and Several Liability: The legal responsibility of each spouse on a Joint Return for the entire tax debt, even if one spouse earned all the income. |
| Joint and Several Liability | Both spouses are equally responsible for the tax on a joint return. |
| Joint Return | Tax return filed by married taxpayers together. |
| Joint Return | A single tax return filed by a married couple who share joint and several liability for the tax and any subsequent deficiencies. |
| Judgment Lien | Legal claim against property for unpaid tax debt. |
| K-1 (Schedule K-1) | A tax document used to report a taxpayer’s share of income, losses, and deductions from a partnership, S corporation, or estate/trust. |
| Keogh Plan | Retirement plan for self-employed individuals. |
| Kiddie Tax | Tax on unearned income of a child over a certain threshold. |
| Levy | Legal seizure of property to satisfy a tax debt. |
| Levy (Tax Levy) | The legal seizure of a taxpayer’s property or assets (like wages, bank accounts) by the IRS to satisfy a tax debt. |
| Lien | Claim against assets for unpaid taxes. |
| Lien (Tax Lien) | A public claim against a taxpayer’s property (real estate, personal property) that provides security for a tax debt. |
| Lifetime Learning Credit | Education credit for qualified tuition. |
| Loss Carryforward | Applying a past loss to future tax years. |
| LTCG | Long-Term Capital Gain: Profit from selling a Capital Asset held for more than one year, taxed at preferential rates. |
| MAGI | Modified Adjusted Gross Income: AGI with various additions/subtractions, used to determine eligibility for certain tax benefits. |
| Marginal Tax Rate | The tax rate applied to your last dollar of taxable income. |
| Married Filing Separately | Filing status for married couples who file individual returns. |
| Medicare Tax | Federal payroll tax funding Medicare. |
| MFJ / MFS | Married Filing Jointly / Married Filing Separately: Two common Filing Statuses for married couples. |
| MMI (Mortgage Interest) | Mortgage Interest: Deductible interest paid on a home loan, claimed as an Itemized Deduction. |
| Miscellaneous Deductions | Expenses not categorized elsewhere (subject to limits). |
| Modified Adjusted Gross Income (MAGI) | AGI with specific adjustments added back; determines eligibility for credits. |
| Moving Expenses | Deductions for certain expenses incurred when moving for a new job (limited to members of the armed forces after the TCJA). |
| NFTL | Notice of Federal Tax Lien: A formal notice that the IRS has placed a Lien on a taxpayer’s property. |
| NOL | Net Operating Loss: When a business’s allowable deductions exceed its gross income. Can be used to offset income in other years (Carryback/Carryover). |
| Non-Refundable Credit | Credit limited to your tax liability. |
| Non-Refundable Credit | A credit that can reduce tax liability to zero, but any excess amount is lost. |
| Non-Resident Alien | Someone not a U.S. citizen or resident for tax purposes. |
| Notice of Deficiency (90-Day Letter) | IRS notice proposing additional tax. |
| Notice of Deficiency | A formal IRS letter (often called a “90-day letter”) stating the IRS has determined a tax deficiency is owed. |
| OBR | Offset Bypass Refund: See Bypass Refund (rare, for Injured Spouses). |
| Offer in Compromise (OIC) | Agreement to settle your tax debt for less than owed. |
| Offer in Compromise (OIC) | An agreement between a taxpayer and the IRS that settles a tax liability for less than the full amount owed. |
| Offset | Reduction of your refund to pay federal or state debts. |
| Offset (Refund Offset) | The practice of withholding a Tax Refund and applying it to a past-due federal or state debt (e.g., child support, student loans, back taxes). |
| Ordinary Income | Regular income such as wages and interest. |
| Overpayment | The total amount by which your tax payments (withholding, estimated taxes, credits) exceed your final Tax Liability, resulting in a Tax Refund. |
| PAL | Passive Activity Loss: Losses from activities in which the taxpayer does not materially participate (e.g., most rental activities). |
| PATH Act | Protects Americans from Tax Hikes Act of 2015; delays EITC/CTC refunds until mid-February. |
| PATH Act Hold | An official IRS hold required by the Protecting Americans from Tax Hikes Act, delaying refunds for returns claiming the EITC or ACTC until mid-February. |
| PAYE | Pay As You Earn: A term describing the U.S. tax system, which requires taxes to be paid throughout the year (via withholding or estimated taxes). |
| Penalty Abatement | Request to remove IRS penalties for reasonable cause. |
| Per Diem | A daily allowance for business travel expenses (lodging, meals) that can be claimed instead of tracking every single receipt. |
| PFD | Permanent Fund Dividend: A state tax payment (common in Alaska) that is often partially or fully taxable at the federal level. |
| P&I | Penalty and Interest: The additional amounts owed to the IRS on any unpaid tax liability. |
| Power of Attorney (Form 2848) | Authorizes a tax professional to represent you. |
| Power of Attorney (POA) | A legal document authorizing one person (e.g., a CPA) to represent another (Taxpayer) before the IRS (Form 2848). |
| Premium Tax Credit (PTC) | Credit to help pay for Marketplace health insurance. |
| Processing Date | The projected date the IRS system expects to complete your return. |
| PTIN | Preparer Tax Identification Number: The required identification number for all paid tax preparers. |
| PTC | Premium Tax Credit: A refundable credit to help individuals and families pay for health insurance purchased through a Marketplace. |
| QBI | Qualified Business Income: Income from a sole proprietorship, partnership, or S corporation that may qualify for a significant 20% deduction (Section 199A Deduction). |
| QCD | Qualified Charitable Distribution: Money transferred directly from an IRA to a qualified charity, which is excluded from income. |
| Qualified Child | A dependent meeting IRS age, relationship, and residency tests. |
| Qualified Dividends | Dividends taxed at favorable long-term capital-gain rates. |
| Qualified Expenses | Expenses that meet the legal criteria to be a deduction or to qualify a taxpayer for a specific credit. |
| Qualified Retirement Plan | Plan meeting IRS requirements for tax benefits. |
| QRP | Questionable Return Program: An IRS program that flags returns for verification, often delaying refunds. |
| RAC | Refund Anticipation Check: A financial product that allows a taxpayer to get their refund via check or prepaid card, often with a fee. |
| RAL | Refund Anticipation Loan: A short-term loan against an expected tax refund. |
| RRC | Recovery Rebate Credit: The official term for claiming an unpaid or partial EIP (stimulus payment) on a tax return. |
| Refund Freeze (TC 570/810) | Code showing a hold or offset in progress. |
| Refund Issued (TC 846) | Code showing your refund has been approved and sent. |
| Refund Offset (TC 898) | Code showing your refund was applied to a debt. |
| Refund | The money the government pays back to the taxpayer for their Overpayment. |
| Refundable Credit | A credit that can result in the taxpayer receiving money back even if they owe no tax. |
| Regressive Tax | A tax that takes a larger percentage of income from low-income earners than from high-income earners (e.g., sales tax). |
| Return Received | Status indicating the IRS has accepted your return. |
| Revenue Officer | IRS employee assigned to collect unpaid taxes. |
| ROI | Return on Investment: A measure of the profitability of an investment. |
| ROTH IRA | Retirement account funded with after-tax dollars; grows tax-free. |
| ROTH IRA | An IRA where contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free. |
| SALT Deduction | State and Local Tax Deduction: An Itemized Deduction for state and local income or property taxes paid, which is currently capped at $10,000. |
| Schedule A | Itemized deduction form. |
| Schedule A | The form used to report Itemized Deductions. |
| Schedule C | Profit or loss from business. |
| Schedule C | The form used to report income and expenses from a business or self-employment (sole proprietorship). |
| Self-Employment Tax | Social Security and Medicare tax for the self-employed. |
| Self-Employment Tax | The Social Security and Medicare taxes paid by self-employed individuals (both the employer and employee portions). |
| SEP IRA | Simplified Employee Pension IRA: A retirement plan for small businesses and self-employed individuals. |
| Short-Term Capital Gain | Profit from selling a Capital Asset held for one year or less, taxed as ordinary income. |
| S-Corp / C-Corp | S-Corporation / C-Corporation: Legal business structures with different tax treatments. |
| SSN | Social Security Number: The taxpayer’s primary TIN for individuals. |
| Standard Deduction | A fixed dollar amount that taxpayers can subtract from their AGI if they choose not to Itemize Deductions. |
| Statute of Limitations | Time limit for IRS assessments or refunds. |
| Stimulus Check | Common slang for EIP (Economic Impact Payment) or RRC (Recovery Rebate Credit). |
| Substantial Presence Test | A test used to determine if an alien is considered a resident of the U.S. for tax purposes. |
| Substitute for Return (SFR) | Return filed by the IRS when you fail to file. |
| Superseding Return | A corrected return filed before the original due date (including extensions), which effectively replaces the original return. |
| TAO | Taxpayer Assistance Order: An order issued by the TAS to require an IRS official to take or stop action on a taxpayer’s account. |
| TAS | Taxpayer Advocate Service: An independent organization within the IRS that helps taxpayers who are experiencing economic harm or serious problems with the IRS. |
| Tax Account Transcript | IRS record showing all account activity for a tax year. |
| Tax Avoidance | Legal methods of reducing tax liability (e.g., claiming deductions, investing in tax-free accounts). |
| Tax Evasion | Illegal reduction of tax liability by concealing income or falsifying deductions. |
| Tax Expenditure | A provision in the tax code (like a deduction or credit) that reduces tax revenue, often viewed as a government subsidy delivered through the tax system. |
| Tax Return Transcript | Summary of your original return as processed. |
| Taxable Income | AGI minus deductions and exemptions. |
| Taxable Income | The final amount of income on which the income tax is calculated (AGI minus the greater of Standard or Itemized Deductions). |
| TCJA | Tax Cuts and Jobs Act: Major 2017 tax legislation that changed individual and business tax rates and rules. |
| TIN | Taxpayer Identification Number: The unique number used to identify a taxpayer (SSN for individuals, EIN for businesses). |
| Transcript Cycle Code | Weekly or daily processing code identifying posting date. |
| Transcript Request (4506-T) | Form used to request transcripts. |
| Transcript | A document from the IRS detailing a taxpayer’s tax return, account activity, wage, or income information. Often requested to track refund delays. |
| TY | Tax Year: The calendar year for which a return is being filed (e.g., TY 2024). |
| Underpayment Penalty | Fee for not paying enough estimated tax. |
| Underpayment Penalty | A penalty assessed when a taxpayer did not pay enough tax throughout the year (via withholding or Estimated Taxes). |
| Unearned Income | Income not derived from performing services, such as interest, dividends, rent, and passive activity income. |
| Unemployment Compensation | Taxable benefits received when unemployed. |
| Unreimbursed Business Expenses | Work-related costs paid without employer reimbursement. |
| Unreimbursed Expenses | Expenses paid by an employee that are not reimbursed by their employer (generally no longer deductible as an Itemized Deduction). |
| VAT | Value-Added Tax: A type of consumption tax levied on goods and services at each stage of production and distribution. |
| Verification of Non-Filing Letter | IRS letter confirming you didn’t file a return. |
| VITA | Volunteer Income Tax Assistance: An IRS-sponsored program offering free tax preparation services to qualifying taxpayers. |
| Voluntary Compliance | The principle that the U.S. tax system relies on taxpayers to willingly and honestly report their income and file returns. |
| Voluntary Disclosure | Telling the IRS about unreported income before they contact you. |
| W-2G | Form reporting gambling winnings. |
| W-4 | Employee form instructing employers how much tax to withhold. |
| W-4 Form | The form employees use to tell their employer how much federal income tax to Withhold from their paychecks. |
| W-7 Form | The application form for an ITIN. |
| W-9 | Form requesting taxpayer identification number. |
| Wage & Investment (W&I) | The IRS operating division responsible for processing the majority of individual income tax returns. |
| Where’s My Refund (WMR) | IRS online tool to track your refund status. |
| Where’s My Amended Return? | The official IRS online tool used to check the status of Form 1040-X. |
| Where’s My Refund? | The official IRS online tool used to check the status of a filed Form 1040 refund. |
| Withholding | Tax deducted from income by an employer or payer. |
| Withholding | The amount of federal, state, and local taxes taken out of a paycheck and sent to the government on the employee’s behalf. |
| Write-Off | Common slang for a Deduction or an allowable business expense. |
| X | Shorthand for Form 1040-X (Amended Return). Online users often say “I filed my X last week.” |
| X Code (1040-X) | Amended return code for corrections to a filed return. |
| Year-to-Date (YTD) | Total income or withholding accumulated during the year. |
| YTD | Year-To-Date: Refers to cumulative amounts of income, withholding, or other figures from the start of the year to the current date (often found on pay stubs). |
| Yield | Return on investment, typically taxable as interest or dividends. |
| Zero Balance | When your tax liability and payments exactly offset. |
| Zero Tax Liability | A tax situation where the taxpayer owes $0 in tax for the year. The entire refund amount in this case is due to Refundable Credits or over-withholding. |
| Zone Academy Bond | A type of tax-credit bond supporting school renovation. |
Understanding tax terms doesn’t have to be daunting. With resources like our Tax Refund Glossary, you can approach tax season with confidence and ensure you’re making the most of your financial situation. The more you know, the better equipped you are to manage your money effectively and secure the refund you deserve.
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