Tax Abbreviations
116 abbreviations · part of Business & Finance Abbreviations
Abbreviations for tax forms, filing statuses, credits, deductions, payroll taxes and taxpayer identification numbers, centered on the US federal system and covering major terms from the United Kingdom, Canada, the European Union, Australia and India. US forms issued by the Internal Revenue Service are known almost entirely by their numbers, so each entry explains who files or receives the form and when. Rates, thresholds and deadlines change often; confirm current figures with the relevant tax authority before relying on them.
| Abbreviation | Stands for | Description |
|---|---|---|
| 1031 | Like-kind exchange (Internal Revenue Code section 1031) | Tax-deferral technique that lets an owner of investment or business real estate sell it and reinvest the proceeds in another qualifying property without paying capital… |
| 1040 | U.S. Individual Income Tax Return (IRS Form 1040) | Main federal income tax return for US citizens and residents, reporting income, adjustments, deductions, credits and payments to determine whether tax is owed or… |
| 1040-ES | Estimated Tax for Individuals (IRS Form 1040-ES) | Worksheet and payment vouchers that self-employed people, investors and others without enough withholding use to pay tax in four installments, due around April 15, June… |
| 1040-NR | U.S. Nonresident Alien Income Tax Return (IRS Form 1040-NR) | Federal return for nonresident aliens with US-source income, such as international students with campus jobs, foreign owners of US rental property or visitors with US… |
| 1040-SR | U.S. Tax Return for Seniors (IRS Form 1040-SR) | Version of Form 1040 for taxpayers aged 65 or older, printed in larger type with a standard deduction chart that includes the additional amounts for age and blindness. |
| 1040-X | Amended U.S. Individual Income Tax Return (IRS Form 1040-X) | Used to correct a Form 1040 already filed, for example to add a missed W-2, claim an overlooked credit or change filing status. |
| 1041 | U.S. Income Tax Return for Estates and Trusts (IRS Form 1041) | Return filed by the executor of a decedent's estate or the trustee of a trust with gross income of $600 or more in a year, or with any nonresident alien beneficiary. |
| 1065 | U.S. Return of Partnership Income (IRS Form 1065) | Annual information return for partnerships, including most multi-member LLCs, reporting the business's income, deductions and credits. |
| 1095-A | Health Insurance Marketplace Statement (IRS Form 1095-A) | HealthCare.gov and state exchanges send this statement showing monthly premiums, the benchmark silver plan cost and any advance premium tax credit paid for marketplace… |
| 1098 | Mortgage Interest Statement (IRS Form 1098) | Mortgage lenders and servicers send this statement to borrowers who paid $600 or more in mortgage interest during the year; it also shows points paid on a purchase and… |
| 1098-E | Student Loan Interest Statement (IRS Form 1098-E) | Loan servicers issue this statement when a borrower pays $600 or more in student loan interest during the year. |
| 1098-T | Tuition Statement (IRS Form 1098-T) | Colleges and other eligible institutions issue this statement to students, showing qualified tuition and related expenses paid (Box 1) and scholarships or grants… |
| 1099 | IRS Form 1099 information return series | Family of IRS information returns reporting payments other than wages, such as contractor fees, interest, dividends, brokerage sales, retirement distributions and… |
| 1099-B | Proceeds From Broker and Barter Exchange Transactions (IRS Form 1099-B) | Brokerage statement listing each sale of stocks, bonds, mutual funds and options during the year, with proceeds, dates, cost basis when known, and whether each result… |
| 1099-DA | Digital Asset Proceeds From Broker Transactions (IRS Form 1099-DA) | Cryptocurrency exchanges and other digital asset brokers use this return to report customers' sales and exchanges of crypto, stablecoins and similar assets. |
| 1099-DIV | Dividends and Distributions (IRS Form 1099-DIV) | Brokerages, mutual funds and companies issue this statement to report dividends and capital gain distributions paid to an investor. |
| 1099-G | Certain Government Payments (IRS Form 1099-G) | Federal, state and local agencies send this form for payments such as unemployment compensation and state or local income tax refunds, credits and offsets, which may be… |
| 1099-INT | Interest Income (IRS Form 1099-INT) | Banks, credit unions, brokerages and the Treasury send this statement to report interest paid to an account holder during the year, generally once it reaches $10. |
| 1099-K | Payment Card and Third Party Network Transactions (IRS Form 1099-K) | Card processors, payment apps and online marketplaces such as PayPal, Venmo, Etsy and eBay use this form to report the gross amount a user received for goods and… |
| 1099-MISC | Miscellaneous Information (IRS Form 1099-MISC) | Catch-all information return for payments a business makes in the course of its trade that are not wages or contractor fees, including rents, royalties, prizes and… |
| 1099-NEC | Nonemployee Compensation (IRS Form 1099-NEC) | Return a business files for each independent contractor, freelancer or other non-employee it paid for services above the reporting threshold during the year. |
| 1099-R | Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (IRS Form 1099-R) | Reports any distribution of $10 or more from a pension, annuity, IRA, 401(k) or similar plan, including rollovers and Roth conversions. |
| 1120 | U.S. Corporation Income Tax Return (IRS Form 1120) | Federal income tax return for C corporations, which pay tax at the entity level at a flat 21% rate. |
| 1120-S | U.S. Income Tax Return for an S Corporation (IRS Form 1120-S) | Annual return for corporations that have elected S status, reporting income that passes through to shareholders on Schedule K-1 instead of being taxed at the corporate… |
| 409A | Section 409A (nonqualified deferred compensation rules) | Section of the Internal Revenue Code governing nonqualified deferred compensation, best known for requiring startup stock options to be granted at or above fair market… |
| 4868 | Application for Automatic Extension of Time To File U.S. Individual Income Tax Return (IRS Form 4868) | Gives individual taxpayers an automatic six-month extension, usually to October 15, to file Form 1040. |
| 501(c)(3) | Charitable organization (Internal Revenue Code section 501(c)(3)) | Federal tax-exempt status for organizations operated exclusively for charitable, religious, educational, scientific or similar purposes. |
| 501(c)(4) | Social welfare organization (Internal Revenue Code section 501(c)(4)) | Tax-exempt status for civic leagues and social welfare groups, such as advocacy organizations and some volunteer fire companies. |
| 83(b) | Section 83(b) election | Election under section 83(b) of the Internal Revenue Code that lets someone receiving restricted stock pay income tax on its value at grant instead of as it vests. |
| 940 | Employer's Annual Federal Unemployment (FUTA) Tax Return (IRS Form 940) | Annual return reporting an employer's federal unemployment tax, due January 31 for the previous year. |
| 941 | Employer's Quarterly Federal Tax Return (IRS Form 941) | Quarterly return on which employers report wages paid, federal income tax withheld, and both the employer and employee shares of Social Security and Medicare taxes. |
| 990 | Return of Organization Exempt From Income Tax (IRS Form 990) | Annual information return that most tax-exempt organizations, including charities and foundations, must file, disclosing revenue, expenses, executive pay, governance… |
| ABN | Australian Business Number | Eleven-digit identifier issued through the Australian Business Register to companies, sole traders and other entities, quoted on invoices and in dealings with government. |
| ACTC | Additional Child Tax Credit | Refundable portion of the Child Tax Credit, paid to families whose credit exceeds their income tax liability and calculated at 15% of earned income above $2,500, up to… |
| AGI | Adjusted gross income | Total income from wages, interest, business profits and other sources minus specific "above-the-line" adjustments such as deductible IRA contributions, HSA… |
| AMT | Alternative minimum tax | Parallel federal income tax calculation that adds back certain deductions and preferences and applies 26% and 28% rates above a large exemption. |
| AOTC | American Opportunity Tax Credit | Federal education credit worth up to $2,500 per eligible student for each of the first four years of higher education, covering 100% of the first $2,000 of qualified… |
| AY | Assessment year | In Indian income tax, the 12-month period starting April 1 in which income earned during the previous financial year is assessed and taxed. |
| CGT | Capital gains tax | Tax on profit from selling an asset that has risen in value, such as shares, property or a business. |
| CP2000 | IRS Notice CP2000 (proposed adjustment to income tax return) | Letter from the IRS Automated Underreporter program sent when income, payments or credits on a return do not match what employers, banks or brokers reported. |
| CRS | Common Reporting Standard | OECD standard approved in 2014 under which financial institutions in more than 100 participating jurisdictions collect account holders' tax residency and report foreign… |
| CTC | Child Tax Credit | Federal credit for each qualifying child under 17 who has a Social Security number, partly refundable for families with earned income. |
| DAF | Donor-advised fund | Charitable giving account held at a sponsoring nonprofit, such as a community foundation or a fund linked to an investment firm, into which donors contribute assets for… |
| EA | Enrolled Agent | Federally authorized tax practitioner licensed by the Internal Revenue Service after passing the three-part Special Enrollment Examination (SEE) and a background check. |
| EFTPS | Electronic Federal Tax Payment System | Free US Treasury service for making federal tax payments online or by phone, used mainly by businesses to deposit payroll taxes and by individuals for estimated taxes. |
| EIN | Employer Identification Number | Nine-digit federal tax ID, formatted XX-XXXXXXX, that the IRS assigns to businesses, nonprofits, estates, trusts and household employers for filing returns, running… |
| EITC | Earned Income Tax Credit | Refundable federal credit for low- and moderate-income workers, worth most to families with qualifying children, that can produce a refund even when no income tax is… |
| ETR | Effective tax rate | Total tax divided by income, showing the share of income actually paid in tax; for individuals it is usually far below the top marginal bracket because of progressive… |
| FATCA | Foreign Account Tax Compliance Act | Requires foreign banks and other financial institutions to report accounts held by US taxpayers to the IRS or face 30 percent withholding on certain US payments, and… |
| FBAR | Report of Foreign Bank and Financial Accounts (FinCEN Form 114) | Annual report US citizens, residents and entities must file with the Treasury's Financial Crimes Enforcement Network when the combined value of their foreign financial… |
| FEIE | Foreign earned income exclusion | Provision that lets US citizens and residents who live and work abroad exclude a large, inflation-adjusted amount of foreign earned income from US income tax. |
| FICA | Federal Insurance Contributions Act tax | US payroll tax funding Social Security and Medicare, withheld from employees' wages and matched by employers: 6.2% each for Social Security up to an annual wage base… |
| FIT | Federal income tax | Pay stub abbreviation for the federal income tax an employer withholds from each paycheck, calculated from the employee's W-4 and IRS withholding tables. |
| FTC | Foreign tax credit | US credit for income taxes paid to other countries, reducing US tax dollar for dollar so the same income is not taxed twice. |
| FUTA | Federal Unemployment Tax Act tax | Federal payroll tax paid only by employers, at 6.0% on the first $7,000 of each employee's annual wages, to fund unemployment programs. |
| GST | Goods and services tax | Value-added tax known by this name in Canada, Australia, New Zealand, Singapore, India and other countries, charged on most goods and services and credited back to… |
| GSTIN | Goods and Services Tax Identification Number | Fifteen-character number assigned to each business registered under India's GST and required on tax invoices. |
| HOH | Head of household | Filing status for unmarried taxpayers who pay more than half the cost of keeping up a home for a qualifying person, typically a child. |
| HST | Harmonized sales tax | Combined federal and provincial sales tax used in Ontario and the four Atlantic provinces, administered as a single value-added tax by the Canada Revenue Agency. |
| IHT | Inheritance tax | UK tax on the estate of a person who has died, charged at 40% on value above the £325,000 nil-rate band, plus a residence nil-rate band of up to £175,000 when a home… |
| IOSS | Import One-Stop Shop | EU VAT scheme for goods worth up to €150 shipped from outside the EU to consumers, letting sellers and marketplaces collect VAT at checkout and file one monthly return… |
| IP PIN | Identity Protection Personal Identification Number | Six-digit number assigned by the IRS that must appear on a taxpayer's federal return to prove identity, preventing anyone else from e-filing a fraudulent return with… |
| ITC | Input tax credit | Credit a GST- or VAT-registered business claims for tax paid on its purchases, offsetting it against tax collected on its sales so that the tax is ultimately borne only… |
| ITIN | Individual Taxpayer Identification Number | Nine-digit tax processing number the IRS issues to people who must file or be listed on a US tax return but are not eligible for a Social Security number, such as some… |
| ITR | Income tax return | Return filed with India's Income Tax Department on one of several numbered forms chosen by taxpayer type: ITR-1 (Sahaj) for salaried individuals with simple income… |
| K-1 | Schedule K-1 | Schedule showing each partner's, S corporation shareholder's or trust beneficiary's share of the entity's income, deductions and credits, which the recipient then… |
| LIHTC | Low-Income Housing Tax Credit | Federal tax credit that states award to developers who build or rehabilitate rental housing with rents restricted for low-income households, typically those earning up… |
| LLC | Lifetime Learning Credit | Nonrefundable federal education credit equal to 20% of up to $10,000 of qualified tuition and fees, for a maximum of $2,000 per return. |
| LTCG | Long-term capital gain | Profit from selling an investment or other capital asset held more than one year, taxed at preferential federal rates of 0%, 15% or 20% depending on taxable income. |
| MACRS | Modified Accelerated Cost Recovery System | US tax depreciation system that assigns business assets to recovery periods, such as 5 years for computers and vehicles, 7 for office furniture, 27.5 for residential… |
| MAGI | Modified adjusted gross income | Income measure used to determine eligibility for ACA premium tax credits, Medicaid for most adults and children, and various tax benefits. |
| MFJ | Married filing jointly | Filing status that lets a married couple combine their incomes and deductions on one return, using wider tax brackets and a standard deduction twice that of a single… |
| MFS | Married filing separately | Filing status in which each spouse reports only their own income and deductions. |
| MTD | Making Tax Digital | HM Revenue & Customs program requiring businesses and individuals to keep digital records and file through compatible software. |
| NI | National Insurance | UK system of contributions paid by employees, employers and the self-employed on earnings, which funds the State Pension and other contributory benefits and part of the… |
| NIC | National Insurance contributions | Payments made under the UK National Insurance system: Class 1 contributions are deducted from employees' pay and charged to employers on salaries, while the… |
| NIIT | Net investment income tax | Additional 3.8% federal tax on interest, dividends, capital gains, rental income and passive business income for individuals with modified AGI above $200,000 (single)… |
| NOL | Net operating loss | Tax loss that arises when a business's allowable deductions exceed its income for the year, which can be carried to other years to offset taxable income. |
| OASDI | Old-Age, Survivors, and Disability Insurance | Official name of the Social Security program, which pays retirement, survivor and disability benefits funded by a 12.4 percent payroll tax split between employers and… |
| OIC | Offer in compromise | Agreement in which the IRS accepts less than the full tax debt because the taxpayer cannot realistically pay in full, based on income, expenses and asset equity. |
| OSS | One-Stop Shop | EU VAT scheme that lets a business selling goods or services to consumers in several member states declare and pay all that VAT through one quarterly return in a single… |
| P11D | Return of expenses and benefits (Form P11D) | UK form employers file by July 6 to report taxable benefits in kind provided to employees, such as company cars, private medical insurance and interest-free loans. |
| P45 | Details of employee leaving work (Form P45) | UK form an employer gives a departing employee, showing pay and tax to date and the tax code in use, so that the next employer can continue deducting the right amount. |
| P60 | End of Year Certificate (Form P60) | UK form every employer must give employees on its payroll at the end of the tax year on April 5, showing total pay and the income tax and National Insurance deducted. |
| PAN | Permanent Account Number | Ten-character alphanumeric identifier issued by India's Income Tax Department, required for filing returns, opening bank and investment accounts, and large financial… |
| PAYE | Pay As You Earn | HMRC system through which employers deduct income tax and National Insurance from employees' wages and pensions before paying them, using a tax code that reflects each… |
| PST | Provincial sales tax | Retail sales tax charged by Canadian provinces that have not harmonized with the federal GST, including British Columbia (7%), Saskatchewan (6%) and Manitoba (7%… |
| PTC | Premium tax credit | Refundable federal credit that lowers the cost of health insurance bought through HealthCare.gov or a state marketplace, sized according to household income relative to… |
| PTET | Pass-through entity tax | Elective state income tax paid at the partnership or S corporation level, which the entity deducts in full on its federal return, letting owners sidestep the federal… |
| PTIN | Preparer Tax Identification Number | Number that anyone paid to prepare or help prepare federal tax returns must obtain from the IRS and enter on the returns they prepare, in place of their own Social… |
| QBI | Qualified business income | Net income from a qualified pass-through business, such as a sole proprietorship, partnership or S corporation, that may support a deduction of up to 20% under section… |
| QCD | Qualified charitable distribution | Direct transfer from an IRA to a qualified charity by an owner aged 70½ or older, excluded from taxable income and able to count toward required minimum distributions. |
| QOZ | Qualified Opportunity Zone | Low-income census tract designated under a federal program created in 2017, where investors who reinvest capital gains through a Qualified Opportunity Fund (QOF) can… |
| QSBS | Qualified small business stock | Stock in a domestic C corporation with gross assets below a set limit when issued that, if held long enough, lets investors exclude a large amount of gain from federal… |
| QSS | Qualifying surviving spouse | Filing status that lets a widow or widower with a dependent child use joint-return tax rates and the joint standard deduction for the two years after the year the… |
| QST | Quebec sales tax | Provincial value-added tax in Quebec, charged at 9.975% alongside the 5% federal GST for a combined rate of about 14.975%, and administered by Revenu Québec rather than… |
| SALT | State and local taxes | Itemized deduction on the federal return for state and local income or sales taxes plus property taxes. |
| SDI | State disability insurance | Payroll-funded program in a handful of US jurisdictions, including California, New Jersey, New York, Rhode Island, Hawaii and Puerto Rico, that pays partial wage… |
| SDLT | Stamp Duty Land Tax | Tax paid by buyers of land and property in England and Northern Ireland, charged in bands on portions of the price, with surcharges for additional homes and non-UK… |
| SECA | Self-Employment Contributions Act tax | Social Security and Medicare tax paid by self-employed people at a combined 15.3%, covering both the employee and employer shares, on 92.35% of net self-employment… |
| SIT | State income tax | Pay stub abbreviation for state income tax withheld from wages under each state's own withholding certificate and tables. |
| SS-4 | Application for Employer Identification Number (IRS Form SS-4) | Application used to obtain an EIN for a business, estate, trust, nonprofit or household employer. |
| SSA-1099 | Social Security Benefit Statement (Form SSA-1099) | Annual statement the Social Security Administration mails each January showing the total retirement, survivor or disability benefits a person received in the prior… |
| SUTA | State Unemployment Tax Act | State payroll tax that funds unemployment benefits, paid by employers at a rate each state assigns based on industry and layoff history and applied to a state-set wage… |
| TDS | Tax deducted at source | Indian system in which the payer withholds income tax when making certain payments, such as salaries, contractor fees, rent, interest and commissions, and remits it to… |
| TFN | Tax file number | Number of up to nine digits issued by the Australian Taxation Office to individuals and organizations for tax and superannuation. |
| TIN | Taxpayer identification number | General US term for any number the IRS uses to identify a taxpayer, including Social Security numbers, Employer Identification Numbers, Individual Taxpayer… |
| UTR | Unique Taxpayer Reference | Ten-digit number HM Revenue & Customs issues to individuals registered for Self Assessment and to companies for Corporation Tax. |
| VAT | Value-added tax | Consumption tax collected at each stage of production and sale, in which every registered business charges tax on its sales and deducts the tax it paid on purchases, so… |
| W-2 | Wage and Tax Statement (IRS Form W-2) | Annual statement an employer must give each employee, and file with the Social Security Administration, by January 31, showing the prior year's wages and the federal… |
| W-2G | Certain Gambling Winnings (IRS Form W-2G) | Casinos, racetracks, lotteries and other gaming operators issue this form when a payout exceeds reporting thresholds, such as a large slot jackpot or a big keno or… |
| W-4 | Employee's Withholding Certificate (IRS Form W-4) | Form a new employee completes for the employer, not the IRS, to set how much federal income tax is withheld from each paycheck based on filing status, other jobs… |
| W-7 | Application for IRS Individual Taxpayer Identification Number (Form W-7) | Form used to apply for an ITIN, normally attached to the first federal tax return that requires the number, together with original or certified identity documents such… |
| W-8BEN | Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) | IRS form a non-US individual gives to a US payer or financial institution to certify foreign status and, where a tax treaty applies, claim a reduced withholding rate on… |
| W-9 | Request for Taxpayer Identification Number and Certification (IRS Form W-9) | Form a US contractor, freelancer, vendor or account holder gives to a business that will pay them, supplying name, tax classification and taxpayer identification number. |
| WOTC | Work Opportunity Tax Credit | Federal credit employers can claim for hiring people from targeted groups facing barriers to work, such as qualified veterans, long-term unemployed people, SNAP… |
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