Tax Vocabulary

Some common words found in tax forms and tax-related documents appear below.

Alien: This term generally refers to any person who is not a U.S. citizen.

Compensation/Earnings: Wages, salaries, and tips.

Dependents: Generally refers to spouse and children living in the same home as the taxpayer.

Effectively Connected Income: All income, gain or loss from U.S. sources. This pertains to F, J, Q and M visa holders.

Exempt Individual: A person who does not have to count their days of presence in the U.S.

Income: Wages, salaries, tips, interest, dividends, and some scholarships/fellowship grants.

Income Tax Return: A statement filed (submitted) by each individual taxpayer to the IRS or State of New York.

IRS: Internal Revenue Service

Itemized Deductions: Additional amounts which individuals may subtract from income when calculating the taxes they owe. Examples of itemized deductions include charitable contributions, state and local tax withheld, etc.

Standard Deduction: The standard amount that individuals may subtract from income when calculating taxes owed.

Student: A person temporarily in the U.S. on an F, J, Q, or M visa.

Teacher or Trainee: A person who is not a student & who is temporarily in the U.S. on a J or Q visa.

Withholding: U.S. income tax automatically taken from your paycheck.

Last modified: Aug 3, 2015
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