Form 1040 is the standard U.S. individual tax return form that taxpayers use to file their annual income tax returns with the IRS.

Electronic Filing Options for Individuals

IRS Provides Tax Inflation Adjustments for Tax Year 2020

IRS Provides Tax Inflation Adjustments for Tax Year 2021

Tax Reform Affects if and How Taxpayers Itemize Their Deductions

About Schedule B (Form 1040), Interest and Ordinary Dividends

About Schedule A (Form 1040 or 1040-SR), Itemized Deductions

Individuals Living or Working in U.S. Territories/Possessions

About Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico).

Form 1040 is the standard Internal Revenue Service (IRS) form that individual taxpayers use to file their annual income tax returns. A variety of nonresident aliens or their representatives need to file this form:
Those who are engaged in trade or business in the United States
Representatives of a deceased person who would have had to file a Form 1040-NR
Those who represent an estate or trust that had to file a 1040-NR
Note that for tax years 2020 and later filers will no longer use Form 1040NR-EZ and instead will use the Form 1040-NR.
As well, the IRS also produces the 1040-SS and 1040-PR. The 1040-SS is for residents of American Samoa, the CNMI, Guam, Puerto Rico, or the U.S. Virgin Islands who have net self-employment income and do not have to file Form 1040 with the U.S. Form 1040-PR is the Spanish-language equivalent of Form 1040-SS. Form 1040 is the standard Internal Revenue Service (IRS) form that individual taxpayers use to file their annual income tax returns. For 2020, these deductions are as follows:
Single or married filing separately, $12,400
Married filing jointly or a qualifying widow(er), $24,800
Head of household, $18,650
For the tax year 2021, which will be filed in 2022, the numbers have increased and are as follows:
Single or married filing separately, $12,550
Married filing jointly or a qualifying widow(er), $25,100
Head of household, $18,800

Form 1040: U.S. Individual Tax Return

Form 1040-A of the Internal Revenue Service (IRS) was a simplified version of current Form 1040, and used by U.S. taxpayers to file an annual income tax return.

About Form 1040: U.S. Individual Income Tax Return

Questions and Answers about the 2018 Form 1040

Another variant of Form 1040 was Form 1040-EZ, which was even simpler and easier to fill out than Form 1040-A and was also eliminated starting with the 2018 tax filing. Another variant of Form 1040 was Form 1040-EZ, which was even simpler than Form 1040-A and was also eliminated starting with the 2018 tax filing. Form 1040-A of the Internal Revenue Service (IRS) was a simplified version of Form 1040 used by U.S. taxpayers to file an annual income tax return. Once their financial situation became complicated with dependents, special deductions, and credits—such as those associated with post-secondary education tuition—most taxpayers needed to switch from filing with the 1040-EZ to the 1040-A.
The redesigned Form 1040 that debuted with the 2018 tax year is designed to be much simpler to use than its predecessor.

Form 1040-A: U.S. Individual Tax Return

Form 1040EZ: Income Tax Return for Single and Joint Filers with No Dependents was the shortest version of form 1040, designed for taxpayers with basic or simple tax situations.

IRS Form 1040EZ: Income Tax Return for Single and Joint Filers with No Dependents was the shortened version of the Internal Revenue Service (IRS) Form 1040. If the filer received interest income, they could not have been required to file Schedule B, didn’t have amounts in boxes 11, 12, or 13 of Form 1099-INT or boxes 6 and 10 of Form 1099-OID, and didn’t earn any interest as a nominee
Tax credits for retirement savings, health coverage, and education were not allowed
The tax filer could not have received any advance earned income credit (EIC), although they would have been allowed to claim the EIC when filing Form 1040EZ Other requirements for filing the Form 1040EZ included:
The taxpayer and their spouse, if married filing jointly, had to be under age 65 at the end of the relevant filing period
They could not be blind as of the end of the relevant filing period IRS Form 1040EZ: Income Tax Return for Single and Joint Filers with No Dependents was the shortened version of the Internal Revenue Service (IRS) Form 1040. Form 1040EZ was a shortened version of Form 1040 for taxpayers with basic tax situations.

Form 1040EZ: Income Tax Return for Single and Joint Filers with No Dependents

Homeowners seek 125% loans often as mortgage refinancing; the loans are worth 125% of their property's value to secure better interest rates.

A 125% loan—usually a mortgage—carries an initial principal amount equal to 125% (1.25x) of the initial property value. Therefore, according to the risk-based pricing method used by lenders, a loan with an LTV ratio of 125% will carry a higher interest rate than a loan with a LTV ratio of 100% or below. A 125% loan is a relatively risky loan as compared to a loan with an LTV ratio of less than 100%. Because they involve a sum that's greater than the value of the property being mortgaged, a 125% loan carries higher interest rates than conventional loans. A primary measure of a loan's default risk to a lender is the size of a loan relative to the value of the underlying property.

125% Loan

With a 2-1 buydown, a borrower can get temporary discounts on the interest rates of their mortgage for the first two years of the term.

For example, a borrower who has an FHA loan could make a buydown payment to reduce the monthly mortgage for two years on a 15-year or 30-year term loan if a 2-1 buydown option is available. The term 2-1 buydown refers to a type of mortgage product with a set of two initial temporary-start interest rates that increase in stair-step fashion until it reaches a permanent interest rate. In a 2-1 buydown, the rate is lowered by two points during the first year, by one in the second year, then goes back to the settled rate after the buydown period expires. This involves the seller or homebuilder making additional payments to the lender in exchange for a reduction in the interest rate for the first few years of the mortgage for temporary buydowns or for the entire length of the loan for permanent buydowns.

2-1 Buydown

A 2/28 adjustable-rate mortgage (2/28 ARM) maintains a low fixed interest rate for a 2-year period, after which the rate floats semiannually.

A 2/28 adjustable-rate mortgage (2/28 ARM) is a type of 30-year home loan that has an initial two-year fixed interest rate period. 2/28 adjustable-rate mortgages (ARMs) offer an introductory fixed rate for two years, after which the interest rate adjusts semi-annually for 28 more years. With the former, the fixed interest rate applies for only the first two years, followed by 28 years of adjustable rates; with the latter, the fixed rate is for three years, with adjustments in each of the following 27 years. The potential catch-22 of a 2/28 adjustable-rate mortgage is that after two years the rate is adjusted every six months, typically upward, by an ARM margin over and above an index rate, such as the London Interbank Offered Rate (LIBOR). A 2/28 adjustable-rate mortgage (2/28 ARM) is a type of 30-year home loan that has an initial two-year fixed interest rate period.

2/28 Adjustable-Rate Mortgage (2/28 ARM)

A 3-2-1 buy-down mortgage allows the borrower to lower the interest rate over the first three years through an up-front payment.

A 3-2-1 buy-down mortgage allows a borrower to lower the interest rate over the course of the first three years of the loan through an up-front payment. A 3-2-1 buy-down mortgage allows the lender the lower the interest rate of a mortgage over the first three years of repayment
In return for an up-front payment, the loan interest is reduced by 3 percentage points in the first year, 2 in the second year, and 1 in the third year, off of some base interest rate. A buydown is a mortgage-financing technique where the buyer is able to obtain a lower interest rate for at least the first few years of the mortgage, or possibly its entire life buy providing an up-front payment. After the buydown period ends, the mortgage reverts to a fixed interest loan at the base interest rate. A 3-2-1 buy-down mortgage allows a borrower to lower the interest rate over the course of the first three years of the loan through an up-front payment.

3-2-1 Buy-Down Mortgage

A 3/27 adjustable-rate mortgage (ARM) is a 30-year home loan with a fixed interest rate for the first three years.

A 3/27 adjustable-rate mortgage (ARM) is a 30-year loan that carries a fixed interest rate for the first three years, then a variable rate for the remaining 27 years. A 3/27 adjustable-rate mortgage (ARM) charges a fixed interest rate for the first three years, followed by a variable interest rate for the remaining 27 years. Because their monthly payments can rise significantly once the interest rate adjusts, borrowers should plan carefully before taking out a 3/27 ARM to make sure it will still be affordable.
Adjustable-rate mortgages are a type of home loan in which the interest rate applied to the outstanding balance varies throughout the life of the loan. A 3/27 adjustable-rate mortgage (ARM) is a 30-year mortgage with a three-year fixed interest rate period.

3/27 Adjustable-Rate Mortgage (ARM)

“341 meeting” refers to a meeting between creditors and debtors that is required to take place during the course of a Chapter 7 bankruptcy proceeding.

11 U.S.C. 341 -- Meetings of Creditors and Equity Security Holders

The term “341 meeting” refers to a meeting between creditors and debtors that is required to take place during the course of a Chapter 7 bankruptcy proceeding. During the meeting, the lawyers for the debtor and creditor engaged in detailed conversation regarding the debtor’s assets, liabilities, and income sources; and were able to negotiate a general plan for the gradual repayment of the outstanding debt. Although the attorneys of the debtor and creditor are welcome to attend, the only parties whose presence at the 341 meeting is legally required are the debtor in question and the court-appointed trustee. The debtor present declared bankruptcy over a $5,000 debt, and has attended the meeting along with his bankruptcy lawyer. If the creditors are in attendance, they will be able to ask clarifying questions, such as whether the debtor is entitled to any upcoming income sources, ie. tax rebates or inheritances, or whether the debtor owns undisclosed assets, such as shares in a private business or assets held overseas.

341 Meeting

The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry in the 1950s, 1960s, and 1970s that was the result of non-competitive and simplistic conditions in the industry.

The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry in the 1950s, 1960s, and 1970s that was the result of non-competitive and simplistic conditions in the industry. The 3-6-3 rule describes how bankers would supposedly give 3% interest on their depositors' accounts, lend the depositors money at 6% interest, and then be playing golf by 3 p.m.
After the Great Depression, the government implemented tighter banking regulations, which made it more difficult for banks to compete with each other and limited the scope of the services they could provide clients; as a whole, the banking industry became stagnant.
After the Great Depression, the government implemented tighter banking regulations. For example, banks may now provide a greater range of services, including retail and commercial banking services, investment management, and wealth management. The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry in the 1950s, 1960s, and 1970s that was the result of non-competitive and simplistic conditions in the industry. The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry, specifically in the 1950s, 1960s, and 1970s, which was the result of non-competitive and simplistic conditions in the industry.

3-6-3 Rule

A 401(a) plan is an employer-sponsored money-purchase retirement plan funded with contributions from the employee, the employer, or both.

Retirement Topics - Exceptions to Tax on Early Distributions

A 401(a) plan is an employer-sponsored money-purchase retirement plan that allows dollar or percentage-based contributions from the employer, the employee, or both. A 401(a) plan is an employer-sponsored money-purchase retirement plan that allows dollar or percentage-based contributions from the employer, the employee, or both. If an individual leaves an employer, they do have the option of transferring the funds in their 401(a) to a 401(k) plan or individual retirement account (IRA).
Employers can form multiple 401(a) plans, each with distinct eligibility criteria, contribution amounts, and vesting schedules. Employer contribution options include the employer paying a set amount into an employee's plan, matching a fixed percentage of employee contributions, or matching employee contributions within a specific dollar range. The employee can withdraw funds from a 401(a) plan through a rollover to a different qualified retirement plan, a lump-sum payment, or an annuity.

401(a) Plan

A 401(k) plan is a tax-advantaged retirement account offered by many employers. There are two basic types—traditional and Roth.

The CARES Act and Required Minimum Distributions (RMDs): Options for Certain Individuals

Retirement Topics - 401(k) and Profit-Sharing Plan Contribution Limits

2021 Limitations Adjusted as Provided in Section 415(d), etc

Retirement Topics - Exceptions to Tax on Early Distributions.

Retirement Plan and IRA Required Minimum Distributions FAQs.

Designated Roth Accounts - Distributions.

Rollovers of Retirement Plan and IRA Distributions

How Much Salary Can You Defer if You’re Eligible for More than One Retirement Plan

Table of Contents
Expand What Is a 401(k) Plan?
How 401(k) Plans Work
Taking Withdrawals from a 401(k)
Traditional 401(k) vs. Roth 401(k)
Special Considerations: When You Leave Your Jobs
What Is a 401(k) Plan and How Does It Work?
Is It Worth Having a 401(k) Plan? As of 2020 and in 2021, the limits on employee contributions are $19,500 per year for workers under age 50 and $26,000 for those 50 and up (including a $6,500 catch-up contribution).
If the employer also contributes, or if the employee elects to make additional, non-deductible after-tax contributions to their traditional 401(k) account, the total employee/employer contribution for workers under 50 for 2021 is capped at $58,000, or 100% of employee compensation, whichever is lower. There are immediate tax advantages for the employee if the account is a traditional 401(k), and tax advantages after retiring if it is a Roth 401(k). How Much of My Salary Can I Contribute to a 401(k) Plan?
A 401(k) plan is a retirement savings plan offered by many American employers that has tax advantages to the saver.

401(k) Plan : How It Works & Limits

A 403(b) plan is similar to a 401(k) but is designed for certain employees of public schools and tax-exempt organizations among other differences.

Income ranges for determining IRA eligibility change for 2021

COLA Increases for Dollar Limitations on Benefits and Contributions

Retirement Topics - 403(b) Contribution Limits

Publication 571,Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations

Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers

I. SECTION 403(b) TAX-SHELTERED ANNUITY ARRANGEMENTS

Retirement Plans FAQs regarding 403(b) Tax-Sheltered Annuity Plans: Coverage and Nondiscrimination

Table of Contents
Expand Both also offer Roth options and require participants to reach age 59½ to withdraw funds without incurring an early withdrawal penalty.﻿﻿ Like a 401(k), the 403(b) plan offers $6,500 catch-up contributions for those age 50 and older in 2020 and 2021.﻿﻿ Unlike a 401(k) As with a 401(k), funds withdrawn from a 403(b) plan before age 59½ are subject to a 10% tax penalty, although you may avoid the penalty under certain circumstances, such as separating from an employer at age 55 or older, needing to pay a qualified medical expense, or becoming disabled. What Is 403(b) Plan?
Understanding 403(b) Plan
Advantages of 403(b) Plan
Disadvantages of 403(b) Plan Earnings and returns on amounts in a regular 403(b) plan are tax-deferred until they are withdrawn and tax-deferred if the Roth 403(b) withdrawals are qualified distributions.

403(b) Plan

A 408(k) account is an employer-sponsored, retirement savings plan similar to but less complex than a 401(k).

100 Must-Know Statistics About 401(k) Plans

A 408(k) account, commonly referred to as a Simplified Employee Pension (SEP) plan, is an employer-sponsored, retirement savings plan. While the 401(k) plan is funded with pre-tax dollars (resulting in a tax levy on withdrawals down the line), a Roth 401(k) is another type of employer-sponsored investment savings account that is funded with after-tax money. A 408(k) account, commonly referred to as a Simplified Employee Pension (SEP) plan, is an employer-sponsored, retirement savings plan. A 408(k), also known as a Simplified Employee Pension (SEP), is an employer-sponsored retirement plan akin to the 401(k). Unlike a SEP, employees may contribute to a 401(k) plan, and they remain a popular retirement savings option for companies with more than 25 employees.

408(k) Plan

A 412(i) plan was a defined-benefit pension plan that was designed for small business owners in the United States.

EP Abusive Tax Transactions - Deductions for Excess Life Insurance in a Section 412(i) or Other Defined Benefit Plan

A 412(i) plan was a defined-benefit pension plan that was designed for small business owners in the U.S. According to the IRS, the requirements for 412(e)(3) are as follows:
Plans must be funded exclusively by the purchase of a combination of annuities and life insurance contracts or individual annuities,
Plan contracts must provide for level annual premium payments to be paid extending not later than the retirement age for each individual participating in the plan, and commencing with the date the individual became a participant in the plan (or, in the case of an increase in benefits, commencing at the time such increase becomes effective),
Benefits provided by the plan are equal to the benefits provided under each contract at normal retirement age under the plan and are guaranteed by an insurance carrier (licensed under the laws of a state to do business with the plan) to the extent premiums have been paid,
Premiums payable under such contracts for the plan year, and all prior plan years, have been paid before lapse or there is a reinstatement of the policy,
No rights under such contracts have been subject to a security interest at any time during the plan year, and
No policy loans are outstanding at any time during the plan year A 412(i) plan was a defined-benefit pension plan that was designed for small business owners in the U.S.
A 412(i) was a tax-qualified benefit plan, meaning the owner's contributions to the plan became a tax deduction for the company. If so, how do you fund this plan? (i.e., annuities, insurance contracts, or a combination?)
What is the amount of the death benefit relative to the amount of retirement benefit for each plan participant? A 412(i) plan was a defined-benefit pension plan that was designed for small business owners in the U.S.

412(i) Plan

457 plans are non-qualified, tax-advantaged, deferred compensation retirement plans offered by state, local government and some nonprofit employers.

Generally speaking, 457 plans are non-qualified, tax-advantaged, deferred compensation retirement plans offered by state governments, local governments, and some nonprofit employers. There are two types of 457 plans:
**457(b)**: This is the most common 457 plan and is offered to state and local government employees.
**457(f)**: A plan offered to highly compensated government and select non-government employees. Generally speaking, 457 plans are non-qualified, tax-advantaged, deferred compensation retirement plans offered by state governments, local governments, and some nonprofit employers. However, any early distribution from a 457 plan whereby the funds were a result of a direct transfer or rollover from a qualified retirement plan—such as a 401(k)—would be subject to the 10% penalty tax. 1:34
Notably, 457 plans are similar in nature to 401(k) plans, only rather than being offered to employees at for-profit companies, they cater to state and local public workers, together with highly paid executives at certain nonprofit organizations, such as charities.

457 Plan

The 5/1 hybrid ARM is an adjustable-rate mortgage with an initial five-year fixed interest rate, after which the interest rate adjusts every 12 months according to an index plus a margin.

How It Works: Adjustable-Rate Mortgages (ARMs)

The Federal Reserve Board: Consumer Handbook on Adjustable-Rate Mortgages

With an Adjustable-Rate Mortgage (ARM), What Are Rate Caps and How Do They Work?

What Is the Difference Between a Fixed-Rate and Adjustable-Rate Mortgage (ARM) Loan?

A 5/1 hybrid adjustable-rate mortgage (5/1 ARM) begins with an initial five-year fixed interest rate period, followed by a rate that adjusts on an annual basis. Pros
Lower introductory rates than traditional fixed-interest mortgages
Interest rates possibly drop before the mortgage adjusts, resulting in lower payments
Good for buyers who will live in their homes for short periods of time
Higher interest rates than standard adjustable-rate mortgages (ARMs)
When mortgage adjusts, interest rates probably rise
Could be trapped in unaffordable rate hikes due to personal issues or market forces 5/1 Hybrid ARM vs. Fixed-Rate Mortgage
**5/1 Hybrid ARM**
**Fixed-Rate Mortgage**
The loan’s interest rate adjusts after the initial fixed-rate period.
The interest rate remains the same for the life of the loan. A 5/1 hybrid adjustable-rate mortgage (5/1 ARM) begins with an initial five-year fixed interest rate period, followed by a rate that adjusts on an annual basis. With the former, the fixed interest rate applies for only the first two years, followed by 28 years of adjustable rates; with the latter, the fixed rate is for three years, with adjustments in each of the following 27 years.

5/1 Hybrid Adjustable-Rate Mortgage (5/1 Hybrid ARM)

A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) has an initial fixed five-year interest rate, and then adjusts every six months.

A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) is an adjustable-rate mortgage (ARM) with an initial five-year fixed interest rate, after which the interest rate begins to adjust every six months according to an index plus a margin, known as the fully indexed interest rate. A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) is an adjustable-rate mortgage (ARM) with an initial five-year fixed interest rate, after which the interest rate begins to adjust every six months according to an index plus a margin, known as the fully indexed interest rate. A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) is an adjustable-rate mortgage (ARM) where the interest rate is fixed for the first five years, then it adjusts every six months. The margin is a fixed percentage rate that is added to an indexed rate to determine the fully indexed interest rate of an adjustable-rate mortgage. Lifetime caps limit the maximum amount an interest rate can increase beyond the initial rate, while periodic caps restrict how much the interest rate can increase during each adjustment period of a loan.

5/6 Hybrid Adjustable-Rate Mortgage (5/6 Hybrid ARM)

A 501(c)(3) organization is a tax-exempt non-profit organization. Learn the requirements, costs, and pros and cons of setting up a 501(c)(3).

Exemption Requirements - 501(c)(3) Organizations

Compliance Guide for 501(c)(3) Public Charities

Exempt Organizations Annual Reporting Requirements - Form 990, Schedules A and B: Public Charity Support Test

Form 1023: Purpose of Questions About Organization Applying More than 27 Months After Date of Formation

Form 1023 and 1023-EZ: Amount of User Fee

How Long Does It Take to Get a 501(c)(3) Determination Letter

Explaining The Differences Between 501(c)3 And 501(c)4 Non-Profits

Table of Contents
Expand While the Internal Revenue Service (IRS) recognizes more than 30 types of nonprofit organizations, organizations that qualify as 501(c)(3) organizations are unique because donations to these organizations are tax-deductible for donors.
501(c)(3) organizations must pay their employees fair market value wages.
To receive its favorable tax treatment, the non-profit organization must not deviate from its purpose or mission.
To be considered a charitable organization by the IRS, an organization must operate exclusively for one of these purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. What Is a 501(C)(3) Organization?
How a 501(c)(3) Organization Works
Requirements of a 501(c)(3)
Special Considerations
Pros and Cons of a 501(c)(3)
Example of a 501(c)(3)
501(c)(3) FAQs
The Bottom Line
Section 501(c)(3) is a portion of the U.S. Internal Revenue Code (IRC) and a specific tax category for nonprofit organizations. While the Internal Revenue Service (IRS) recognizes more than 30 types of nonprofit organizations, organizations that qualify as 501(c)(3) organizations are unique because donations to these organizations are tax-deductible for donors. It is typically not permitted to engage in lobbying (except in instances when its expenditures are below a certain amount).
People employed by the organization must be paid solely based on the fair market value that the job function requires, with no expectation of bonuses or compensation.
Once an organization is categorized as a 501(c)(3), the designation remains as long as the organization exists, unless it is revoked by the IRS.
To remain tax-exempt under Section 501(c)(3)

501(c)(3) Organization

A 529 plan is a tax-advantaged account that can be used to pay for qualified education costs, including college, K-12, and apprenticeship programs.

Investor Bulletin: 10 Questions to Consider Before Opening a 529 Account

Topic No. 313 Qualified Tuition Programs (QTPs)

H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019

Table of Contents
What Is a 529 Plan? You may transfer the plan to another family member, defined as:
Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them
Brother, sister, stepbrother, or stepsister
Father or mother or ancestor of either
Stepfather or stepmother
Son or daughter of a brother or sister
Brother or sister of father or mother
Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
The spouse of any individual listed above
First cousin As with 529 savings plans, prepaid tuition plans grow in value over time, and the money that eventually comes out of the account to pay tuition is not taxable. The two main types of 529 plans—college savings plans and prepaid tuition plans—have some significant differences. The two major types of 529 plans are savings plans and prepaid tuition plans.

529 Plan

60-plus delinquencies are home loans that are more than 60 days past due on their monthly mortgage payments. 

CARES Act Forbearance Fact Sheet for Mortgagees and Servicers of FHA, VA, or USDA Loans

Federal Eviction Moratoriums in Response to the COVID-19 Pandemic

Federal Housing Administration Extends Single Family Eviction Moratorium: Today’s Announcement Extends the Eviction Moratorium Through September 30 for Foreclosed Borrowers and Other Occupants and Notes Expiration of the Foreclosure Moratorium on July 31

CDC Issues Eviction Moratorium Order in Areas of Substantial and High Transmission

Supreme Court of the United States: On Application to Vacate Stay

CFPB Issues Credit Reporting Guidance During COVID-19 Pandemic

Mortgage Delinquencies Decrease in the First Quarter of 2021

The 60-plus delinquency rate is a metric that is typically used for the housing industry to measure the number of mortgage loans that are more than 60 days past due on their monthly payments. Oftentimes, 60-plus rates are published separately for fixed-rate loans versus adjustable-rate loans, which have a variable rate and might have the option to reset to a fixed rate later in the term. The 60-plus delinquency rate is a metric that is typically used for the housing industry to measure the number of mortgage loans that are more than 60 days past due on their monthly payments. The 60-plus delinquency rate is a metric typically used to measure the number of mortgage loans that are more than 60 days past due on their monthly payments. If the delinquency rate on past-due mortgages rises beyond a certain level, the mortgage-backed security may experience a shortfall of cash, leading to difficulty making the interest payments to investors.

60-Plus Delinquencies

An 80-10-10 mortgage "piggybacks" a 10% home equity loan on top of a conventional 80% mortgage, leaving a 10% down payment.

An 80-10-10 mortgage is a loan where first and second mortgages are obtained simultaneously. Borrowers will, however, face relatively larger monthly mortgage payments and may see higher payments due on the adjustable loan if interest rates increase.
​​​​​​​When a prospective homeowner buys a home with less than the standard 20% down payment, they are required to pay private mortgage insurance (PMI). The second mortgage is usually an adjustable-rate mortgage, such as a home equity loan or home equity line of credit (HELOC). This type of mortgage scheme reduces the down payment of a home without having to pay private mortgage insurance (PMI), helping borrowers obtain a home more easily with the up-front costs. The first mortgage lien is taken with an 80% loan-to-value ratio (LTV ratio), meaning that it is 80% of the home's cost; the second mortgage lien has a 10% loan-to-value, and the borrower makes a 10% down payment.

80-10-10 Mortgage

90-Day Letter is an IRS notice sent after an audit asserting a discrepancy or error in an individual's taxes and they will be assessed unless petitioned. 

90-Day Letter is an IRS notice stating that there was a discrepancy or error within an individual's taxes and they will be assessed unless petitioned. Once you receive your notice, you have 90 days (150 days if the notice is addressed to a person who is outside the country) from the date of the notice to file a petition with the Tax Court, if you want to challenge the tax the IRS proposed, according to the agency. If you don't dispute the accuracy of the assessment the Internal Revenue Service has made, you won’t need to amend your tax return unless you have additional income, expenses, or credits that you want to report. If you agree with the findings but have additional income, expenses, or credits to claim, it will be necessary to amend your original tax return with Form 1040-X.﻿﻿ In that case, all you need to do is sign Form 5564, Notice of Deficiency and return it to the IRS with a check attached to avoid additional interest and or penalties.

90-Day Letter

An A-B trust is a joint trust created by a married couple for the purpose of minimizing estate taxes.

IRS provides tax inflation adjustments for tax year 2020

IRS provides tax inflation adjustments for tax year 2021

An A-B trust is a joint trust created by a married couple for the purpose of minimizing estate taxes. The trust gets its name from the fact that it splits into two upon the first spouse's death—where trust A is the survivor's trust and trust B is the decedent's trust. This is because the B trust uses up the estate tax exemption of the spouse that died first, hence, any funds left in the decedent’s trust will be passed tax-free. If one spouse dies, the unused portion of their estate tax exemption can be transferred and added to the estate tax exemption of the surviving spouse. After death, the sum of money equal to the estate tax exemption in the year that they die is put in an irrevocable trust called the bypass trust, or B trust.

A-B Trust

A-Credit is a high grade that a lender may assign to a loan applicant based on their credit score and other factors. 

A-Credit is a designation that a lender may assign to a borrower with a high credit score. Lower scores or grades can mean higher interest rates and make it harder to get a loan at all.
FICO scores are based on a set of factors: payment history, total debt owed, length of credit history, types of credit, and new credit.﻿﻿﻿﻿﻿﻿ Lenders typically reward high FICO scores with a higher letter grade. Higher scores or letter grades can help them qualify for lower interest rates, making loans less expensive, which in turn makes it easier to keep up with their payments and maintain their strong credit scores. Over time, Daniel's credit score rises to 700, putting him in A-credit territory. A longer credit history can help boost a score because it shows how well the borrower has handled debt over time.

A-Credit

The Alliance of American Insurers is a coalition consisting primarily of property-casualty insurance carriers.

The Alliance of American Insurers (AAI) was a coalition consisting primarily of property-casualty insurance carriers, formed as political lobby for this part of the insurance industry. In 2004, the AAI and National Association of Independent Insurers (NAII) merged to form a new organization known as the Property Casualty Insurers Association of America (PCI), which at the time reportedly represented more than 40 percent of the market for property and casualty insurance.
PCI subsequently merged with the American Insurance Association (AIA) in January 2019 to form the American Property Casualty Insurance Association (APCIA), which represents nearly 60 percent of carriers in the property casualty insurance industry in the United States.
PCI's purpose was to advocate on behalf of its members in all 50 states and on Capitol Hill, while keeping members current on information critical to their businesses. It tracked bills and regulation impacting property insurance and casualty insurance_—_on both a state and federal level_—_and provided information to its members to help them make informed business decisions.
The Alliance of American Insurers was a lobbying group for the property-casualty industry. In 2019, PCI merged with the American Insurance Association to form the American Property Casualty Insurance Association (APCIA). The Alliance of American Insurers (AAI) was a coalition consisting primarily of property-casualty insurance carriers, formed as political lobby for this part of the insurance industry.

Alliance of American Insurers (AAI)

The Associate in Information Technology (AIT) designation is geared toward educating insurance professionals about the IT environment. 

Associate in Information Technology Designation

An Associate in Information Technology (AIT) designation is geared towards various insurance professionals, such as agency personnel, agency principals, automation project team members, claims representatives, IT staff, line of business managers, support and general office staff, and underwriters. The following courses are required to earn the AIT designation:
**AIT 131: Essentials of Information Technology**
This course covers the following topics:
Internet and the World Wide Web
Input and Output
Communications, Networks, and Safeguards
Personal Technology
Databases and Information Systems
Challenges of the Digital Age
Programming
**AIT 132: Insurance Uses of Technology**
This course covers the following topics:
Technology and Insurance Information
Managing a System
Effect on Marketing/Basic Policy Processing
Needs Analysis
Technology in Underwriting and Claims
Information Security
Agency Management Systems
Internet Insurance Marketing
Internet Sales and Service in the Insurance Industry
Agency/Company Interface
Industry Level Information Requirements
**AIT 134: The Strategic Management of Information**
This course covers the following topics:
Creating Business Advantage with IT
Crafting Business Models
Building Networked Businesses
Making the Case for Networked Business
Understanding Internetworking Infrastructure
Assuring reliable and Secure IT Services
Managing Diverse IT Infrastructures
Organizing and Leading the IT function
Managing IT Outsourcing
A Portfolio Approach to IT
Data Warehousing An Associate in Information Technology (AIT) gives insurance and insurance IT professionals the skills and knowledge they need to bridge the gap between insurance and IT. The designation allows insurance professionals to bridge the gap between insurance and IT by covering the technical areas that insurance professionals should understand and giving the IT professional an in-depth understanding of insurance automation issues. There are two ways to earn an AIT designation: (1) Complete AIT 131, AIT 132, and AIT 134 or (2) use either or both previously completed parts of AAM 131 and AAM 132 along with the current AIT 134.

Associate in Information Technology (AIT)

AARP is America's leading organization for people age fifty and older, providing member benefits, marketing services, and lobbying on their behalf.

The American Association of Retired Persons, commonly known by its acronym AARP, is America's leading organization for people aged fifty and older, providing member benefits, marketing services, and lobbying on their behalf. AARP also has many other initiatives, including promoting driver safety (AARP Driver Safety), producing television programming that targets seniors, and engaging in sponsorships that support social causes, such as raising awareness of and fighting hunger in America. Within the foundation operates AARP Experience Corps., which encourages tutoring and mentoring of children, and AARP Institute, which holds its gift annuity funds. **AARP Financial Services** holds AARP real estate and is for-profit. The American Association of Retired Persons, commonly known by its acronym AARP, is America's leading organization for people aged fifty and older, providing member benefits, marketing services, and lobbying on their behalf.

AARP

An ABA transit number that appear on standard checks and are used to identify specific U.S. financial institutions.

ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. The ABA routing number appears in two forms on most checks: as a machine-readable nine-digit number on the bottom left (followed by the checking account number), and as a fraction at the top. Sometimes referred to as a check routing number, ABA transit numbers were developed by the American Bankers Association in 1910 to indicate check processing endpoints. The seventh digit in the number identifies the assigned Federal Reserve check processing center for the bank, and the eight represents the Federal Reserve district the bank resides in.

ABA Transit Number

The American Bankers Association (ABA) is the largest banking trade association in the United States, and it represents banks of all sizes.

ABA Statement on Bank On Account Milestone

Regulators update Volcker, swaps and rate-cap rules

Dodd-Frank Wall Street Reform and Consumer Protection Act

1975-1999: A History of America's Banks and The ABA

Table of Contents
What Is the ABA?
Understanding the ABA
Outreach and Education
ABA FAQs The ABA has a strong position within the industry, fathering initiatives such as the nine-digit routing number and the ABA Banking Indexes.
One of the ABA’s prominent research publications is the Consumer Credit Delinquency Bulletin (CCDB).
The principal activities of the American Bankers Association (ABA) include The ABA’s three banking indexes include:
ABA NASDAQ Community Bank Index (ABAQ)
NASDAQ OMX ABA Community Bank Index (ABQI)
ABA NASDAQ Community Bank Total Return Index (XABQ) The ABA is one of the United States’ largest financial trade groups, and it is primarily a trade organization, which means it does not provide actual banking services or work within the banking system. Table of Contents
What Is the ABA?
Understanding the ABA
Outreach and Education

American Bankers Association (ABA)

An abandonment clause in a property insurance contract permits the property owner to abandon lost or damaged property and still claim a full settlement.

An abandonment clause in a property insurance contract, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. An abandonment clause in a property insurance contract, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. An abandonment clause in a property insurance contract, under certain circumstances, permits property owners to abandon lost or damaged property and still claim a full settlement. If the insured party's property cannot be recovered, or the recovery or repair costs are more than its total value, it can be abandoned, and the insured party is entitled to a full settlement.
The abandonment clause typically comes into play with marine property insurance, such as boats or watercraft. Inaction—that is, failure to do something with the property or non-use of it—is not enough to demonstrate that the owner has relinquished rights to the property, even if such non-use has perpetuated for years.

Abandonment Clause

An Abbreviated New Drug Submission (ANDS) is a written request to obtain marketing approval for a generic drug in Canada.

Sponsor Attestation Checklist for Abbreviated New Drug Submissions (ANDSs)

Guidance Document: Use of a Foreign-sourced Reference Product as a Canadian Reference Product

An Abbreviated New Drug Submission (ANDS) is a written request to Health Canada to obtain marketing approval for a generic drug. An ANDS supplies information regarding data on studies comparing the proposed drug to the approved brand name drug, called the “reference drug,” and asks for data from studies conducted on the generic drug.﻿﻿ The ANDS also supplies information about studies comparing the bioavailability of the brand name drug with that of the proposed generic drug, and about the results of bacterial endotoxin tests for sterile drugs. The submission provides critical information, such as data on studies comparing the generic drug to the approved brand name drug and their respective bioavailabilities. An Abbreviated New Drug Submission must be approved by Health Canada, the country’s federal department in charge of national health care, under Canada’s Food and Drug Regulations, before the generic drug can be marketed in the country.

Abbreviated New Drug Submission (ANDS)

Abeyance is a situation in which the rightful owner of a property, office or title has not yet been decided. 

Abeyance is a situation in which the rightful owner of a property, office or title has not yet been decided. Although they are not part of the trust itself, the probate court is a necessary component of the trust's activity because the court oversees the trustee's handling of the trust. Abeyance is when the rightful owner of a property or trust has not been decided or has not met the obligations required to inherit the property, such as age or achievement requirements. It is created to address any assets accumulated during that person's lifetime or generated as a result of a postmortem lawsuit, such as a settlement in a survival claim or the proceeds from a life insurance policy held on the settlor. A trustee is appointed to direct the trust until a set time when the trust expires.

Abeyance

The ability to repay describes an individual's financial capacity to make good on a debt, potentially qualifying them for a mortgage or other loan.

Ability-to-Repay and Qualified Mortgage Rule Assessment Report

Two Final Rules to Promote Access to Responsible, Affordable Mortgage Credit

Updated Ability-To-Repay and Qualified Mortgage Requirements

The ability to repay refers to an individual's financial capacity to make good on a debt. Factors considered in the ability to repay include the borrower's income, assets, employment status, liabilities, credit history, and the debt-to-income (DTI) ratio. But as of December 2020, the DTI requirements of the ability to repay rule have been eliminated and replaced with a priced-based approach, with the CFPB noting that a loan’s price is a strong indicator of a consumer’s ability to repay. The ability to repay is one's ability to repay debts and obligations. The factors used to determine the ability to repay include the borrower's current income and assets.

Ability to Repay

An ABLE account is a tax-advantaged savings account available to individuals who have been diagnosed with significant disabilities before turning 26.

ABLE Accounts—Tax Benefit for People with Disabilities

IRS Reminds Those With Disabilities of New ABLE Account Benefits

Tax Highlights for Persons with Disabilities, Publication 907

An ABLE account is a tax-advantaged savings account available to individuals diagnosed with significant disabilities before age 26. The funds in ABLE accounts are invested and grow tax-free as long as distributions are for qualified disability expenses, which include education; housing; transportation; employment training and support; assistive technology and related services; personal support services; health, financial management and administrative services; legal fees; expenses for ABLE account oversight and monitoring; funerals and burials; and basic living expenses. ABLE accounts were created by the 2014 Achieving a Better Life Experience (ABLE) Act, as a way of helping disabled individuals maintain public benefits such as Supplemental Security Income (SSI) and Medicaid, which require that beneficiaries have savings and other assets below certain levels to remain eligible. Seven states—Hawaii, Idaho, Maine, North Dakota, South Dakota, Utah, and Wyoming—don't have active ABLE programs, but if a state accepts outside residents into its program you can open an ABLE account there, regardless of where you live. When the beneficiary of an ABLE account dies, the state in which the person lived can file a claim to some or all of any funds remaining in the account to recoup Medicaid costs.

ABLE (Achieving a Better Life Experience) Account

An above-the-line deduction is an item that is subtracted from gross income in order to calculate adjusted gross income on the IRS form 1040.

Form 1040: U.S. Individual Income Tax Return

Topic No. 458 Educator Expense Deduction.

An above-the-line deduction is an item that is subtracted from gross income in order to calculate adjusted gross income on the IRS Form 1040. The above-the-line deductions are separate items from the itemized deductions provided on the Form 1040 schedule A, and are also different from the standard deduction that can be claimed on line 40 of the IRS Form 1040.
Above-the-line deductions are subtracted from gross income in order to reach adjusted gross income. Gross income is calculated by adding up an individual or household's sources of income throughout the year as documented on W-2s, as well as 1099s, dividends, capital gains, unemployment income, retirement account distributions, Social Security income, or other forms of monetary income or compensation. This ending taxable income figure is the number that determines the amount of tax an individual or household pays for the year, not the gross income or adjusted gross income. An above-the-line deduction is an item that is subtracted from gross income in order to calculate adjusted gross income on the IRS Form 1040.

Above-the-Line Deduction

An absentee landlord, most often found in commercial real estate ownership, rents the property but is not located on or near the property. 

Tips on Rental Real Estate Income, Deductions and Recordkeeping

An absentee landlord is an individual or corporate or state entity that owns and rents out real estate but is not located on or near the property. Absentee landlords can include those who own commercial real estate, vacation homes, second homes for rental income, and those who may have needed to move away from their primary residence.
Absentee landlords can benefit from certain tax deductions, such as travel expenses when visiting their property. Many owners face a choice between selling their property due to a need to relocate and retaining it as an income property, in essence becoming an absentee landlord. An absentee landlord stands in contrast to an owner-occupied landlord, one who lives in the rental property. An absentee landlord stands in contrast to an owner-occupied landlord: one who lives in the rental property.

Absentee Landlord

An absolute beneficiary is an agreement in an insurance policy or another policy that says the designated beneficiary cannot be changed without that entity's approval.

An absolute beneficiary is a designation of a beneficiary that can not be changed without the written consent of that beneficiary. By law, the individual or entity that requests a policy with an absolute beneficiary, or the company that provides it, cannot later change the beneficiary without the written permission of that initially named beneficiary. An absolute beneficiary is a beneficiary of a policy, such as an insurance policy, that cannot be changed without the written consent of that beneficiary. Once a party is named an absolute beneficiary, the other party involved in the agreement cannot later remove that person as a beneficiary, even in the case of a divorce, disownment, estrangement, falling out, or another form of separation or disagreement. An absolute beneficiary is a designation of a beneficiary that can not be changed without the written consent of that beneficiary.

Absolute Beneficiary

Absolute pollution exclusion is a commercial liability insurance clause that removes coverage of pollution resulting from regular business operations.

The Sudden and Accidental Pollution Coverage Myth

Summary of the Comprehensive Environmental Response, Compensation, and Liability Act (Superfund)

Summary of the Resource Conservation and Recovery Act

How the waters off Catalina became a DDT dumping ground

Montrose Chemical Corp. v. Admiral Ins. Co. (1995)

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

Court upholds denials of coverage even in the absence of mold, lead and asbestos exclusions

Absolute pollution exclusion is a commercial liability insurance policy clause that removes coverage of pollution resulting from regular business operations. A clause that denies coverage for all pollution events would be considered a total pollution exclusion and may exclude liability coverage for bodily injury or property damage caused by a pollution event. Absolute pollution exclusions are not total pollution exclusions, which exclude company liability from all pollution-related claims, and contain six exceptions. Absolute pollution exclusions to comprehensive general liability insurance policies became common after 1986 when standard pollution exclusions no longer contained “sudden and accidental” pollution incidents. Absolute pollution exclusions are not true absolute exclusions in that they do allow coverage for incidental pollution events, such as those caused by events not related to normal business operations.

Absolute Pollution Exclusion

An absolute title is a title to a property that is free of any encumbrances. Discover more about absolute titles here.

An absolute title, also known as a perfect title_,_ to a property is free of any encumbrances or deficiencies. An absolute title is a property title that gives an unequivocal right of ownership to the owner, and any buyers that the property is sold to. The holder of the absolute title is free to sell the property at his or her discretion, which could give the buyer absolute title upon completion of the transaction, dependent on how the purchase was structured. Furthermore, if a spouse holds some claim to a property – for example, during divorce proceedings – the seller does not hold the absolute title of over the property. An absolute title, also known as a perfect title_,_ to a property is free of any encumbrances or deficiencies.

Absolute Title

Abstract of Title is the summarized historical legal record of a piece of property. 

Abstract of title is a record of the title history of a property or other significant asset, including transfers, liens, and legal actions that are connected to the property. Any owner who does not have access to their abstract of title can work with a title company or the county recorder with jurisdiction over the property to obtain the abstract, or to recreate the abstract. Abstract of title is a record of the title history of a property or other significant asset, including transfers, liens, and legal actions that are connected to the property. While the Torrens system was adopted by many U.S. states around the turn of the 20th century, today only a few states maintain Torrens title systems to monitor property transactions. Named for Australian economist and politician Robert Torrens, this system was initially implemented to simplify the system of land transfers through registering title deeds through the state, and to resolve the inadequacies of the preceding property registration systems .

Abstract Of Title

An abusive tax shelter is an illegal investment scheme that claims to reduce income tax without changing the value of the user's income or assets.

An abusive tax shelter is a type of illegal investment that claims to reduce the investor’s income tax liability without changing the value of the investor’s income or assets. However, investors must keep in mind that certain strategies for reducing their tax liability can be considered “abusive” by regulators and that people who invest in abusive tax shelters can be penalized by the Internal Revenue Service (IRS).
Not all tax shelters are abusive, however. To help taxpayers recognize potential schemes that could be considered abusive tax shelters, the IRS has compiled a list of transactions that are abusive tax shelters. An abusive tax shelter is a type of illegal investment that claims to reduce the investor’s income tax liability without changing the value of the investor’s income or assets. To help determine whether a given tax shelter is abusive or legitimate, the IRS requires businesses to self-report when they engage in certain types of transactions.

Personal Finance

More in Personal Finance

Terms in Personal Finance