Glossary

A date established by law as the basis of one method of valuation for the calculation of capital gains or losses for income tax purposes.

An interest rate that fluctuates according to a measure or an index. Variable rates on loans are usually capped to protect borrowers from dramatic increases in the interest rate.

Difference between standard cost and actual cost. Also, the difference between an actual revenue or expense item and the budget for that item, or budget variance.

Vertical equity states that people in different income groups pay different rates of taxes. Our current tax system is one of vertical equity.

The process leading to a future time when money or property held in trust will belong to a person. This usually refers to the scheduled confirmation of ownership rights in qualified employee benefit plans.

The relative rate at which the price of a security moves up and down, derived by calculating the annualized standard deviation of daily changes in price.

Your mom might order you to clean up your room but the IRS doesn't have time to tell every single taxpayer to file taxes correctly and on time. There are millions of taxpayers in this country, after all. This system relies on citizens to report their income, calculate tax liability and file tax returns on time. Everyone has to grow up sometime. Check it out.

A contribution by an employee to a retirement plan in excess of mandatory contributions to his or her plan account.

Available in most communities are Volunteer Income Tax Assistance (VITA) sites to help with tax return preparation. People volunteer their time to help their neighbors. The service is free to those with limited or moderate income people, non-English speaking, the elderly and the disabled. Some VITA sites even offer free electronic filing. If you want to know more about a VITA site in your community or volunteering your time, call the IRS at 1-800-906-9887. Check out IRS e-file.