Terms Definitions

1040 Form Federal form that helps decide what the individual will make back on their tax return.
1099 Form A form used to indicate income mainly for contracted workers.
W-2 Form A form that you recieve from your employer with information regarding to your income to help decide what your tax return will be.
8879 Form An IRS form that indicates that the return is electronically filed (gives permission to electronically filed).
Income Money recieved on a regular basis.
AGI- Adjustable Gross Income
Income after considering various expenses that would not be considered taxable.
Alimony Fee payed to a spouse for a divorce decree.
6198 Form A form given to people who put themselves in risky financial situations (such as starting a business) to see how much they can deduct.
Earned Income Credit
The credit
(EIC) given by the IRS to the tax payer if certain low income levels are met.
Deductible An amount of money that someone that is insured must pay when making a claim.
Schedule A On form 1040 this is where various deductions are itemized.
Schedule C On 1040 form this is where business income/loss is recorded.
W-4 Form A form that an employee fills out to decide how much of their paycheck will go towards federal taxes.
8283 Form A federal form that a company, individual, or organization fills out to report information about their charitable contributions.
Form 2106 A form used to for business people wanting to deduct business expenditures from their taxes.
Schedule D On 1040 form this is where capital gain/loss is recorded.
Entitiy Defines the method for tax payer to record income/profit. There are various entities.
Cost Basis The purchase price of stock.
529 College Plan A way to save money for a child's educational costs which are not taxed federally.
1120 Form Form used by corporations to report their income, gains, losses, etc..
LLC Limited Liability Corporation (usually uses schedule C to show income).
IRS Internal Revenue Service- Collects federal taxes.
Brokerage Statement
The form that is used to show their cpaital gain/loss based off of their investments.
Beneficiary The person that benefits from an insurance policy
T.O.D. (Transfer On
Lets
Death)
beneficiaries recieve money and other assests right when someone dies, instead of having to go through probate.
K-1 A way to report income made off of estates or trusts.
Market Volatility A measure of variance between returns of a security.
Fixed Annuity An annuity contract offered by life insurance companies with garunteed rates of return.
Variable Annuity An annuity contract offered by life insurance companies with an opportunity to get higher rates of return.
Probate A period of time that a will is reviewed to see whether or not it real.
Alpha Gauges the performance of an ivestment against a certain benchmark or index.
Beta Gauges the volatility of an investment against the market.
Standard Deviation
A measure of dispersion with 50% of the data being above the mean and 50% of the data above the mean.
Risk The chance that an investment will differ from what you expect it to be.
Allocation To set aside for a particular purpose (money).
Delta A ratio that compares the change in price of a stock.
Volatility The degree of dispersion that a security or other investment will return.
Voya The brockerage account used for all of JCC's investments
401k A strategy for retirement savings where by one's employer can match up to a certain withholding.
Depriciation The amount that something loses value over time. In particular to taxation, a section 179.