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Tax Glossary
What Is “Balance Sheet”?
A balance sheet is a financial “snapshot” that shows exactly what a person or business owns and owes at a...
Tax Glossary
What Is “Amount realized”?
The amount realized is the total value you receive when you sell, exchange, or otherwise dispose of an asset. It...
Tax Glossary
What Is “Allocated tips”?
Allocated tips are amounts that an employer assigns to tipped employees when the total tips reported by the entire staff...
Tax Glossary
What Is “Adjusted basis”?
Adjusted basis is the net cost of an asset after accounting for increases (like improvements) or decreases (like depreciation) during...
Tax Glossary
What Is “1099 income”?
1099 income refers to money earned from sources other than a traditional employer who pays you a regular salary or...
Tax Glossary
What Is “Additional Medicare Tax”?
The Additional Medicare Tax is a 0.9% surtax that applies to individuals whose earned income exceeds specific legal thresholds. Unlike...
Tax Glossary
What Is a “1099 contractor”?
A 1099 contractor is a self-employed professional or business entity hired to perform specific tasks or projects for a client....
US Taxation
Stuck in the ID.me Selfie Loop for IRS Verification? How to Reach a Video Chat Agent Step by Step
A taxpayer resolves a verification issue by switching from the selfie tool to a live video call during IRS verification....
Tax Glossary
What Is “Wage garnishment”?
What Is Wage Garnishment? Wage garnishment is a legal process where the IRS orders your employer to withhold a specific...
Tax Glossary
What Is “Underpayment penalty”?
What Is “Underpayment penalty”? An underpayment penalty is a fee the IRS charges if you do not pay enough of...