• Glossary

    If this doesn't clear things up, just come in. We'll explain everything you need to know.

    Click the first letter of the term you're searching for to get an easy-to-understand explanation.


  • Early Distribution -

    An amount distributed from the individual's pension, annuity, or traditional IRA account before they reach age 59 1/2.

    Earned Income -

    Income received for services, such as wages, salaries, tips, net earnings from self-employment, and professional fees, and any other income received as pay for work actually performed. Earned income also includes taxable scholarship and fellowship grants.

    Earned Income Credit (EIC) -

    A refundable credit for certain individuals who work and have earned income under a certain amount based on their filing status and the number of qualifying children, if any.

    Easement -

    A legal right to use someone else's land for a particular purpose, such as for utilities, for a right-of-way, or for recreational purposes. Ownership is not transferred.

    Education Savings Bond Program -

    A program that allows a taxpayer who paid qualified higher educational expenses during the year to exclude from income all or part of the interest they receive during the same year from redeeming Series EE savings bonds and Series I savings bonds issued after 1989.

    Elective Deferral -

    The voluntary contribution an employer deducts from an employee's pay that is not subject to tax. Also called deferred compensation or pre-tax contributions.

    Eligible Educational Institution -

    Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. These institutions include nearly all accredited, public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions.

    Eligible Foster Child -

    An individual who is placed by an authorized placement agency, or by judgment, decree, or other order of any competent jurisdiction.

    Employee -

    An individual who is hired to work for a person, an organization, or a company in return for compensation and who is subject to the will and control of the employer regarding what work is done and how and when to do it.

    Employer -

    The individual, organization, or company for which an employee works.

    Employer Identification Number (EIN) -

    A nine-digit number assigned by the IRS to an employer for tax filing and reporting purposes.

    Entertainment Expenses-

    Expenses incurred while participating in an activity that provides entertainment, amusement, or recreation

    Erroneous Item -

    Any deduction, credit, or expense item that is incorrectly stated on a tax return and any income item that is not properly reported on a tax return.

    Escrow -

    Placing an amount in the care of a third party to make a payment in the future.

    Estimated Tax

    Estimated tax is the method used to prepay tax on income that is not subject to withholding.

    Excess Accumulation -

    The difference between the minimum amount required to be distributed from a qualified retirement plan and the amount that was actually distributed.

    Exchange -

    To barter, swap, part with, give, or transfer property for other property or services.

    Ex-Dividend Date -

    The date that determines whether the buyer or the seller of stock receives the next dividend distribution a company pays. This date is usually two business days before the date of record.

    Exemption Amount -

    An amount that a taxpayer can claim for themselves, their spouse, and their eligible dependents.

    Extension -

    Additional time granted by the IRS for a taxpayer to file their federal income tax return.