Category: Financial Terms

Forward Contract A forward contract is a private, customizable agreement between two parties to buy or sell an asset at a specified price on a future date. Commonly used for hedging, forwards allow counterparties to lock in prices for commodities, currencies, or interest-rate exposures. Because they are negotiated over-the-counter (OTC) rather than traded on an…

What is the Fortune 500? The Fortune 500 is an annual ranking of the 500 largest U.S. for-profit companies by total revenue for their most recent fiscal year. Published by Fortune magazine since 1955, the list includes both publicly traded and privately held companies that are incorporated in the United States and file financial statements…

Fortune 100: Definition, Requirements, and Top Companies What is the Fortune 100? The Fortune 100 is the list of the 100 largest U.S. companies by annual revenue. It is the top subset of the annual Fortune 500 list, which ranks the 500 largest public and private U.S. companies that report revenue figures to government agencies….

SEC Form ADV: Requirements, Parts, and How to Access Key takeaways SEC Form ADV is the registration and disclosure document investment advisers must file with regulators. It consists of Part 1 (structured data) and Part 2 (plain‑English disclosures). Part 2 includes a supplement about advisory personnel. Form CRS (Relationship Summary) was spun off from Form…

IRS Form 8949: Sales and Other Dispositions of Capital Assets What is Form 8949? Form 8949 is an IRS tax form used to report capital gains and losses from the sale or other disposition of capital assets. It reconciles the transactions reported to taxpayers and the IRS on Form 1099-B (brokerage proceeds) and provides the…

Form 8606: Nondeductible IRAs — What it is and how it works Form 8606, “Nondeductible IRAs,” is the IRS form used to report nondeductible contributions to traditional IRAs and to track the basis (after‑tax contributions) in IRA accounts. It is also used when converting traditional or SEP IRAs to Roth IRAs and to determine the…

Form 843: Claim for Refund and Request for Abatement What is Form 843? Form 843 is an IRS form used to request a refund or abatement of certain taxes, penalties, or interest that were assessed or collected in error. It covers certain non-income taxes and situations where IRS error, delay, or incorrect written advice caused…

Form 8396: Mortgage Interest Credit What is Form 8396? Form 8396 is the IRS form used to claim the mortgage interest credit. The credit helps lower- and moderate-income homeowners afford homeownership by allowing them to claim a portion of mortgage interest paid, but only if they were issued a Mortgage Credit Certificate (MCC) by a…

Form 8379: Injured Spouse Allocation What it is Form 8379, Injured Spouse Allocation, lets a spouse reclaim their share of a joint federal tax refund that the IRS (or Treasury Offset Program) applied to the other spouse’s past-due debts. Common offsets include past-due federal or state tax, child support, and certain federal non-tax debts (for…

Form 8283: Noncash Charitable Contributions Form 8283 is the IRS form used to report noncash charitable contributions when you plan to claim them as itemized deductions. Noncash contributions include donated property such as securities, vehicles, art, collectibles, and other tangible items. Who must file Individuals, partnerships, and corporations must file Form 8283 if the total…

Form 706: United States Estate (and Generation‑Skipping Transfer) Tax Return What Form 706 is Form 706 is the IRS return used by an estate’s executor to: * Calculate federal estate tax owed by a deceased U.S. citizen or resident, and * Calculate the generation‑skipping transfer (GST) tax on transfers to skip persons. The form also…

Form 6781: Gains and Losses From Section 1256 Contracts and Straddles Form 6781 is the IRS form used to report gains and losses from Section 1256 contracts and from options straddles that are subject to mark-to-market rules. Traders in futures, certain options, and other regulated contracts use this form to calculate and report taxable gain…

Form 6252: Installment Sale Income What Form 6252 is Form 6252 is the IRS form used to report income from an installment sale—i.e., a sale of real or personal property in which at least one payment is received after the tax year of sale. It lets taxpayers spread gain over multiple years as payments are…

Form 6251 (Alternative Minimum Tax — Individuals) Form 6251 is the IRS form used to determine whether a taxpayer owes the alternative minimum tax (AMT) instead of the regular federal income tax. The AMT is a parallel tax calculation intended to limit certain deductions and ensure that higher‑income taxpayers pay a minimum level of tax….

Form 5405: First‑Time Homebuyer Credit and Repayment Overview Form 5405 is an IRS tax form originally used to claim the federal first‑time homebuyer tax credit and later revised to report repayment of that credit. The credit applied to homes purchased between April 9, 2008, and September 30, 2010. New purchases are no longer eligible, but…

Form 4952: Investment Interest Expense Deduction Overview Form 4952 is the IRS form used to figure the amount of investment interest expense you can deduct in the current year and the portion that must be carried forward to future years. Individuals, estates, and trusts use it when they borrow money and pay interest related to…

Form 4797: Sales of Business Property What it is Form 4797 (Sales of Business Property) is an IRS form used to report gains or losses from the sale, exchange, or involuntary conversion of business property. This includes property used in a trade or business, property held to produce rental income, and certain natural resource properties…

Form 4684: Casualties and Thefts Overview Form 4684 is the IRS form used to report gains or losses from casualties and thefts. It applies primarily to personal property losses caused by sudden, unexpected, or unusual events (for example: fires, floods, hurricanes, earthquakes, vandalism, or certain criminal acts). Casualty losses are generally deductible in the tax…

Form 4562: Depreciation and Amortization Overview Form 4562 is an IRS form used to claim deductions for depreciation and amortization of business property and to report business use of certain listed property (including vehicles). It documents annual deductions for the decline in value of tangible assets (like equipment and buildings) and amortization of intangible assets…

Form 4506: Request for Copy of Tax Return Key takeaways Form 4506 requests exact copies of previously filed tax returns and related tax information from the IRS. Copies are available for many return types (individual, corporate, partnership, estate/trust). There is a $43 fee per tax period requested. Exact-copy requests take up to about 75 calendar…

Form 2848: Power of Attorney and Declaration of Representative Form 2848 authorizes an individual or organization to represent a taxpayer before the IRS, receive confidential tax information, and perform specified actions on the taxpayer’s behalf. It does not relieve the taxpayer of tax liability. Key takeaways Authorizes representation before the IRS and access to confidential…

Form 2439: Notice to Shareholder of Undistributed Long-Term Capital Gains Overview Form 2439 is an IRS notice RICs (regulated investment companies — mutual funds and ETFs) and REITs must give shareholders when the fund retains and pays tax on long-term capital gains instead of distributing them. The form reports the shareholder’s share of undistributed long-term…

Form 2106-EZ: Unreimbursed Employee Business Expenses Overview Form 2106-EZ was a simplified IRS form used by employees to claim deductions for ordinary and necessary unreimbursed business expenses—things like travel, lodging, meals, and vehicle costs—related to their jobs. The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated most miscellaneous itemized deductions for unreimbursed employee expenses…

Form 2106: Employee Business Expenses What is Form 2106? Form 2106 (Employee Business Expenses) is an IRS form used to deduct ordinary and necessary job-related expenses that an employer does not reimburse. Since the Tax Cuts and Jobs Act (TCJA) of 2018, most employees can no longer claim unreimbursed employee business expenses. Only a few…

SEC Form 13F: What It Is, How It Helps, and Its Limitations Key takeaways * Form 13F is a quarterly SEC filing required of institutional investment managers with at least $100 million in certain assets. * It discloses long equity positions (and some related instruments) to increase market transparency, but has limits: delayed reporting, incomplete…

Form 1310: Claiming a Tax Refund for a Deceased Taxpayer What is Form 1310? Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) notifies the IRS that a taxpayer has died and requests that any federal income tax refund be paid to the appropriate person or estate. It is a one-page attachment to…

Form 1120-S: U.S. Income Tax Return for S Corporations What is Form 1120-S? Form 1120-S is the federal income tax return used by S corporations to report income, gains, losses, deductions, credits, and other tax-related information to the IRS. It must be filed by the 15th day of the third month after the end of…

Form 1099-Q: Payments From Qualified Education Programs What it is Form 1099-Q reports distributions from qualified education programs: Coverdell Education Savings Accounts (CESAs) and 529 plans (qualified tuition programs, QTPs). Distributors (state program administrators, qualified educational institutions, or anyone making a distribution) send the form to the person who received the distribution. The form helps…

Form 1099-R: Distributions From Pensions, Annuities and Retirement Plans Key takeaways * Form 1099-R reports distributions from retirement accounts, pensions, annuities, IRAs, profit‑sharing plans, insurance contracts and similar plans. * Payers (plan managers, issuers, trustees) must issue a 1099-R for distributions of $10 or more. * The form shows gross and taxable distributions, federal tax…

Form 1099-MISC: What It Is and When to File Form 1099-MISC (Miscellaneous Information) is an IRS information return used by businesses to report certain types of miscellaneous payments made to nonemployees. Although nonemployee compensation was moved to Form 1099-NEC beginning with the 2020 tax year, Form 1099-MISC remains important for reporting other specific payment types….

Form 1099-INT Form 1099-INT is an IRS information return used to report interest income paid to a taxpayer during a calendar year. Financial institutions and other payers must issue it to any recipient who receives at least $10 of interest (and in some business contexts at least $600), and must also file a copy with…

Form 1099‑DIV (Dividends and Distributions) Key takeaways Form 1099‑DIV reports dividends and distributions paid to a taxpayer by banks, brokerages, mutual funds, and other financial institutions. Issuers must furnish the form to recipients and file with the IRS, generally by January 31. You’ll receive a 1099‑DIV only if your dividends/distributions for the year exceed $10….

Form 1099-B: Broker and Barter Transactions Explained What is Form 1099-B? Form 1099-B is used by brokers and barter exchanges to report proceeds from sales of securities, commodities, and certain barter transactions. It documents a taxpayer’s capital gains and losses for the year and provides the information needed to complete Form 8949 and Schedule D…

Form 1098: Mortgage Interest Statement What is Form 1098? Form 1098 is a tax document lenders send to homeowners and the IRS when a borrower pays $600 or more in mortgage interest during the year. It reports mortgage-related amounts you may be able to deduct on your federal tax return. Explore More Resources › Read…

Form 1095-C: Employer-Provided Health Insurance Offer and Coverage Form 1095-C reports information about health coverage offered to employees by an Applicable Large Employer (ALE). ALEs are employers that generally have 50 or more full-time employees. The form documents whether an employer offered qualifying health coverage, the months coverage was available, and employee required contributions. Employees…