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Home Dictionary U Uniform Gifts to Minors Ac (UGMA) The Uniform Gifts to Minors Act (UGMA) provides a way to transfer financial assets to a minor without the time-consuming and costly establishment of a formal trust. The UGMA account is managed by an adult custodian until the minor beneficiary reaches the age of majority, at which point they take over the management of the account. Income earned in a UGMA account is not tax-protected, but is taxed at a lower “child tax” rate up to a certain amount. 529 Plan
September 25, 2022 529 Plans are tax credit accounts that can be used to pay for education costs from kindergarten to graduate school. 529 Savings Plan
September 25, 2022 529 Plans are tax credit accounts that can be used to pay for education costs from kindergarten to graduate school. Grant-in-Aid
September 25, 2022 A federal aid grant is federal money given to a recipient to fund a project or program. Higher Education Act of 1965 (HEA)
September 25, 2022 The Higher Education Act of 1965, or HEA, has not been re-authorized by Congress since 2013, but remains in effect on an interim basis. Pell Grant
September 25, 2022 Pell grants are based on financial need and, unlike loans, do not usually require repayment. Registered Education Savings Plan (RESP)
September 25, 2022 A Registered Education Savings Plan (RESP) is a Canadian government sponsored college plan. 1040 U.S. Individual Tax Return Form
September 25, 2022 Form 1040 is what individual taxpayers use to file tax returns with the IRS. 1040EZ Form
September 25, 2022 Form 1040EZ was an abridged version of Form 1040 for taxpayers with basic tax situations. 501(c)(3) Organizations
September 25, 2022 Section 501(c)(3) is part of the Internal Revenue Code (IRC) and is a special tax category for non-profit organizations. Capital Gains Tax
September 25, 2022 Capital gains tax is payable only after the sale of the investment. Corporation
September 25, 2022 A corporation is a legal entity separate and distinct from its owners. Corporations have many of the same legal rights and obligations as individuals. Custodian
September 25, 2022 A custodian is a bank that holds financial assets in safe custody to minimize the risk of theft or loss. De Minimis Tax Rule
September 25, 2022 The de minimis tax rule determines when municipal bond redemptions are capital gains rather than ordinary income. Deferred Tax Asset
September 25, 2022 A deferred tax asset is a balance sheet item that results from an overpayment or advance in taxes. Deferred Tax Liability
September 25, 2022 A deferred tax liability is an obligation to pay taxes in the future. Dual Income, No Kids (DINK)
September 25, 2022 “Double Income, No Children” (DINK) is slang for a household that has two incomes and no children. Employee Retirement Income Security Act (ERISA)
September 25, 2022 ERISA is a federal law that sets standards for certain employer-sponsored retirement plans and rules for plan trustees. Family and Medical Leave Act (FMLA)
September 25, 2022 The Family and Sick Leave Act (FMLA) is a labor law of 1993 that protects the workplace of employees who need to take leave for personal or family reasons. Form 1065
September 25, 2022 IRS Form 1065 is used to report profits, losses, deductions, and business partnership credits for tax purposes. Form 1095-A
September 25, 2022 If you purchase health insurance through the Marketplace, you must obtain a Form 1095-A. Form 1095-C
September 25, 2022 Form 1095-C: Employer Health Insurance Offer and Coverage is a tax form with information about employee health insurance offered by the eligible Large Employer (ALE). Form 1099-B
September 25, 2022 Form 1099-B is sent by brokers to their clients for tax filing purposes. Form 1099-DIV
September 25, 2022 Form 1099-DIV, Dividends and Payments, is sent to investors who receive payments from any type of investment during the calendar year. Form 1099-INT
September 25, 2022 Form 1099-INT is the IRS income tax form used by taxpayers to report interest income received. Form 1120S
September 25, 2022 Form 1120-S reports the income, loss, and dividends of each shareholder of an S corporation.