ACH _ Automated Clearing House
An ACH is an electronic fund transfer made between banks and credit unions across what is called the Automated Clearing House network. ACH is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments.
AGI _ Adjusted Gross Income
Adjusted Gross Income is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income.
ERO _ Electronic Return Originator
The Electronic Return Originator is the Authorized IRS e-file Provider who originates the electronic submission of a return to the IRS. The ERO is usually the first point of contact for most taxpayers filing a return using IRS e-file.
FERS _ Federal Employees Retirement System
FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). Learn more here.
Perjury Penalty
Income tax is filed with to the best of the tax payer’s knowledge under penalties of perjury. A person convicted of perjury under federal law may face up to five years in prison. Perjury also carries fines and probation, depending on the context and the severity of the crime. Potential federal penalties for suborning perjury or making false statements are similar.
TCJA _ Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act changed deductions, depreciation, expensing, tax credits and other tax items that affect businesses. Learn more here.
Wash Sales
If you sell shares at a loss and buy additional shares in the same security 30 days before or after that date (61-day range), you may not claim the loss on your tax return until you sell the new shares. If a wash sale occurs, the loss is disallowed for federal income tax purposes but may be added to the cost basis of the purchased shares.
