A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A

ACH credit

The Automated Clearing House (ACH) credit method allows you to transfer funds by instructing your financial institution to debit your account and credit the state's bank account.

ACH debit

The Automated Clearing House (ACH) debit method allows you to transfer funds by instructing the state to electronically debit a bank account you control for the amount you report to the state's data collector. FTB recommends the ACH debit method because of the simplicity and cost savings to the taxpayer.

Adopted Child

An adopted child is a child you have legally adopted. After legal adoption, the child is considered your child by blood. Before legal adoption, a child is considered your child for head of household purposes if, during the tax year, he or she was placed with you for adoption by an authorized agency and was a member of your household.

Annual Report

Summary of our major program activities during the calendar year and statistical profile of Nevada individual and business taxpayers.

Annulment

If you were married in the tax year but the marriage was later annulled, you are treated as having been unmarried during the year.

B

Board of Equalization (BOE)

The State Board hears and determines all appeals from action of County Boards of Equalization. The State Board also hears and determines direct appeals from valuations of the Nevada Tax Commission and other appeals as provided by law. The Division of Assessment Standards provides staffing for the State Board of Equalization. Publications are grouped by topic and tax type below.

C

Casualty

A casualty occurs when property is damaged as a result of a disaster such as a hurricane, fire, car accident or similar event. Generally, you may deduct a casualty loss only in the tax year in which the loss occurred. However, if you have a casualty loss from a disaster that occurred in an area declared by the President or the Governor as a disaster area, the loss may be claimed for the year in which the disaster occurred, or the year immediately before the loss.

Customer Service Number (CSN)

A 4-digit authentication number the Franchise Tax Board assigns each taxpayer every year. The combination of the CSN and the taxpayer's social security number ensures confidentiality and security when conducting business electronically with us.

D

Disposable Earnings

An employee's total earnings minus lawful deductions.

Lawful deductions include:

• Federal income tax
• Social security
• State income tax
• State disability

E

Earned income

Includes wages, salaries, tips, professional fees, net self-employment income, and other compensation received for personal services.

Earnings Withholding Order

An Earnings Withholding Order is a continuing levy on a percentage of an individual's earnings. We issue an Earnings Withholding Order for individuals who owe an unresolved delinquent vehicle registration amount or court-ordered debt.

Earnings Withholding Orders for Taxes (for employers)

An Earnings Withholding Order for Taxes is a continuing levy on a percentage of a taxpayer's earnings. We issue an Earnings Withholding Order for Taxes for taxpayers who owe an unresolved delinquent tax debt.

e-file

Allows you to file your return electronically using software.

Electronic Funds Transfer (EFT)

A method of payment. It is convenient, helps prevent installment agreement defaults, and saves processing costs.

F

Financial Hardship

If you cannot pay the full amount due with your income tax return, you can ask to make monthly installment payments. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by the due date, even if your request to pay in installments is granted. If your request is granted, you must also pay a fee. To limit interest and penalty charges, pay as much of the tax as possible with your return. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan.

G

Gross Earnings

Wages, salary, commissions, bonuses, vacation pay, or anything an employer pays an employee for personal services.

Gross income

All income you received in the form of money, goods, property, and services from all sources that are not exempt from tax. Gross income does not include any adjustments or deductions.

H

Head of Household

Although you are the head of your house, you may not qualify for the head of household filing status under state and federal tax laws. The legal requirements are more complicated than simply being the head of the house.

Higher Order

A levy sent to an employer from a state agency other than the Franchise Tax Board or from the federal government. For the priority order for withholding.

I

Innocent Spouse

Generally, when a joint tax return is filed, each spouse is equally liable for all the tax, penalties, and interest for the particular joint tax year. This means the entire amount of tax, penalties, and interest may be collected from either spouse, even if only one spouse earned all of the income. However, a spouse who meets certain legal requirements may qualify as an innocent spouse and be fully or partially relieved of the liability to pay joint tax, penalties, and interest.

Installment agreement

If you cannot pay your taxes in full, you may request to make monthly installment payments. If we approve your request, we agree to let you pay the tax you owe in monthly installments instead of immediately paying the amount in full. Once we accept your online installment agreement application, you should receive a written notice within 30 days. You can only make one request per year.

Internal Revenue Service (IRS)

An administrative agency of the U.S. Department of the Treasury that is responsible for collecting federal personal and business income taxes and federal payroll taxes.

L

Levy

A legal court order that compels a third party to withhold part of an individual's wages to satisfy a debt. (A levy is also referred to as a wage garnishment or a wage assessment.)

Liens

A lien is a legal claim against real or personal property to satisfy a debt.

M

Manufacturers' Investment Credit (MIC)

The Manufacturers' Investment Credit was repealed as of January 1, 2004. Use Form 3540 to claim any remaining carryovers for this credit.

N

National

A U.S. national is an individual who, although not a U.S. citizen, owes allegiance to the U.S. This includes American Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of U.S. citizens. For more information, refer to federal Publication 519, U.S. Tax Guide for Aliens at www.irs.gov, or contact your local Office of the Immigration and Naturalization Service.

Nonrefundable Renter's Credit

The Nonrefundable Renter's Credit is a personal income tax credit that can only be used to offset your tax liability; therefore, you must have a tax liability to claim the credit.

Nonresident Alien

If you were a nonresident alien during any part of the year, you cannot qualify for head of household filing status even though you may meet all of the other rules for the filing status.

O

Offer in Compromise (OIC)

The program is for taxpayers who do not have, and will not have in the foreseeable future, the income, assets or means to pay their tax liability. It allows a taxpayer to offer a lesser amount for payment of a non-disputed final tax liability.

P

Power of Attorney

A legal document that allows someone else to act on your behalf, in matters that you specify in the Power of Attorney document. You can also use this document to authorize an individual to receive information administered by us for non-tax issues such as Child Support Collection.

R

Release

A legal order that terminates a wage garnishment, releasing an employer from complying with a current Earnings Withholding Order.

Refundable Tax Credits

A refundable tax credit is a tax credit that is treated as a payment and thus can be refunded to the taxpayer by the Internal Revenue Service. Refundable credits can be used strategically to help offset certain types of taxes that normally cannot be reduced, and they can produce a federal tax refund that is larger than the amount of money a person actually paid in during the year.

S

Separate property

All property owned separately by the husband or wife before marriage. It is also property acquired separately after marriage by the husband or wife as a gift, devise, bequest or inheritance. Separate property may be acquired during marriage by purchase with separate funds, by exchanging the separate property, or in accordance with a pre- or post-nuptial agreement.

Stepchild

A stepchild is not your natural child but is the natural or adopted child of your spouse. To have a stepchild, you must have at some time been married to the child's parent.

T

Tax Gap

Experts define the tax gap as the difference between what taxpayers owe and what they voluntarily pay.

Temporary Absence

Even if you, your spouse, or your qualifying person was temporarily absent from your home, you are considered to have occupied the same household. Temporary absences include those due to illness, education, business, vacations, military service, and, in some cases, incarceration. If you or the qualifying person were absent, it must have been reasonable to assume that you, your spouse, or your qualifying person would return to the household after the temporary absence, and you must have continued to maintain a household in anticipation of the return. Time your qualifying person was in the custody of another person under either a formal or informal custody agreement cannot be considered a temporary absence.

U

Use Tax

You may owe this tax on purchases you made from out-of-state or Internet sellers. Use tax is similar to the sales tax paid on purchases you make in Nevada. You may report use tax on your income tax return instead of filing a use tax return with the State Board of Equalization. To report use tax on your income tax return, use the Use Tax Worksheet in the tax booklet.

V

Voluntary Disclosure Program

Allows qualified entities, qualified shareholders, or beneficiaries that may have incurred an unpaid Nevada tax liability or an unfulfilled filing requirement to disclose their liability voluntarily.

Voluntary Plan Disability Insurance (VPDI)

A private disability insurance plan which meets the requirements of, and is approved by the State of Nevada.

W

Web Pay

Used to make your personal income tax payments online. You can pay today or schedule your payment up to one year in advance.