| As a courtesy to our clients, we have compiled a comprehensive list of common tax terms and definitions for quick reference. | Tax Lingo Troubles? |
Accrual method of accounting |
A business method of accounting requiring income to be reported when earned and expenses to be deducted when incurred. However, deductions generally may not be claimed until economic performance has occurred. |
| Term | Definition |
|---|---|
| Qualified charitable organization |
A nonprofit philanthropic organization that is approved by the U.S. Treasury to receive charitable contribution deductions. |
| Qualified dividends |
Dividends received after 2002 and before January 1, 2011, that are taxed at the long-term capital gain rate. |
| Qualified domestic relations order (QDRO) |
A specialized domestic relations court order that conforms to IRS regulations and provides instructions to pension plan administrators and IRA custodians as to how to pay benefits to a divorced spouse. |
| Qualified plan |
A retirement plan that meets tax law tests and allows for tax deferment and tax-free accumulation of income until benefits are withdrawn. Pension, profit-sharing, stock bonus, employee stock ownership, and Keogh plans and IRAs may be qualified plans. |
| Qualified tuition program (QTP) |
A state-sponsored college savings plan or prepayment plan, or a prepayment plan established by a private college. |
| Qualifying widow or widower |
A filing status entitling the taxpayer with dependents to use joint tax rates for up to two tax years after the death of a spouse. |