Plain-English glossary.

Our membership, $9.99 a month. Each billing month it includes one written question or one 10-minute call with our team, on one topic. Every bookkeeping and tax package includes it, and it is required before buying individual services.

See also: Written question, 10-minute call, Billing month.

One topic you send in your portal. Our team replies with an answer, or a recommended next step, by 6:00 PM Eastern Time on the next business day. A follow-up on the same topic is part of the same question.

See also: Response deadline, Business day.

A Microsoft Teams call with our team on one topic, booked in your portal at least 24 hours ahead, Monday to Friday, 9:30 AM to 5:30 PM Eastern. It uses the month instead of a written question. Cancel at least 24 hours before to get the month back.

See also: Always Accounted Access, Billing month.

Your subscription’s billing period, which isn’t necessarily a calendar month. Your question or call allowance resets on the date shown in your portal, and an unused month does not roll over.

See also: Automatic renewal.

Monday to Friday, excluding United States federal holidays. For a written question, the exact reply deadline shows in your portal.

See also: Response deadline.

A private 30-minute session with our team, $80 for Access members, by video on Microsoft Teams or in person at our office in Wyncote, just outside Philadelphia. You book and pay for it in your portal.

See also: Always Accounted Access.

A monthly bookkeeping plan that includes Access and a set number of bookkeeping hours: Essential, $175 a month (1 hour); Growth, $525 a month (3 hours); Established, $875 a month (5 hours). Delivered in QuickBooks.

See also: Included time, Additional bookkeeping time, QuickBooks.

The professional time included in a bookkeeping package each billing month. It does not roll over. Access alone does not include a bank of work hours.

See also: Additional bookkeeping time.

Bookkeeping time beyond your package, at $43.75 per 15 minutes. It is added only after you approve it.

See also: Included time.

Our monthly plan for personal tax returns, with Access included, starting at $25 a month. The annual scope is confirmed after intake, and you approve the final price before you enroll.

See also: Scope, Engagement agreement.

Our monthly plan for business tax filing and planning, with Access included, starting at $149 a month. Entity type, owners, states, payroll and record quality decide the final annual scope, which you approve before you enroll.

See also: Scope, Engagement agreement.

Professional work billed by time for Access members: tax and agency work at $160 an hour, and bookkeeping and accounting operations at $175 an hour. Each starts with an estimate, and we ask before going beyond it.

See also: Scope.

The short form on our website for tax, cleanup, notice and other work that needs a scope first. No payment is taken until you approve the next step.

See also: Scope, Quote.

The work we agree to do, what it includes and what it does not include. You approve the scope and price before additional work begins.

See also: Quote, Engagement agreement.

The proposed price for a defined piece of work. You review it in your portal before you approve and pay.

See also: Scope.

The written agreement for a specific service, such as a tax package. It sets out the work, the price and what happens if the service ends early. Where it differs from our general policy, the agreement controls for that service.

See also: Scope.

The form, or set of forms, filed with a tax agency to report income, deductions and credits and to figure the tax owed or the refund due. Individuals file a federal return on Form 1040, and many also file state and local returns.

See also: Form 1040, Tax year. More on irs.gov.

The 12-month period a tax return covers. For most individuals it is the calendar year; some businesses use a different fiscal year.

See also: Tax return.

The category a return is filed under, based on marital status and household: single, married filing jointly, married filing separately, head of household or qualifying surviving spouse. It affects the standard deduction and the tax rates that apply.

See also: Standard deduction, Dependent. More on irs.gov.

A qualifying child or qualifying relative who may be claimed on a return. The IRS sets tests for relationship, age, residency and support.

See also: Filing status, Child Tax Credit. More on irs.gov.

Total income minus certain adjustments, such as some retirement contributions. Many credits and deductions depend on AGI.

See also: Taxable income.

The part of income that tax is figured on: generally AGI minus the standard deduction or itemized deductions, and certain other deductions.

See also: Adjusted gross income (AGI), Standard deduction, Itemized deductions.

A fixed amount, set for each filing status and adjusted each year, that reduces the income tax is figured on. Most people take it instead of itemizing.

See also: Itemized deductions, Filing status. More on irs.gov.

Specific expenses, such as mortgage interest, state and local taxes and gifts to charity, listed on Schedule A instead of taking the standard deduction. Limits apply.

See also: Standard deduction. More on irs.gov.

An amount that reduces the tax owed dollar for dollar. A deduction, by contrast, reduces the income the tax is figured on.

See also: Refundable credit.

A credit that can be paid out as part of a refund even when it is more than the tax owed. A nonrefundable credit can only reduce the tax to zero.

See also: Tax credit, Earned Income Tax Credit (EITC).

A refundable federal credit for workers with low to moderate income. Eligibility depends on earned income, AGI, filing status and qualifying children.

See also: Refundable credit, Adjusted gross income (AGI). More on irs.gov.

A federal credit for taxpayers with qualifying children. Part of it may be refundable.

See also: Dependent, Tax credit. More on irs.gov.

Tax taken out of pay, or certain other payments, during the year and sent to the IRS or the state on the worker’s behalf. Employers use the employee’s Form W-4 to figure it.

See also: Form W-2, Estimated tax payments. More on irs.gov.

Payments made during the year on income that has no withholding, such as self-employment income. Federal estimated tax is usually paid in four installments, with Form 1040-ES.

See also: Form 1040-ES, Self-employment tax. More on irs.gov.

Social Security and Medicare tax paid by people who work for themselves, figured on Schedule SE. It is in addition to income tax.

See also: Schedule SE, Independent contractor. More on irs.gov.

Money returned when the tax paid during the year, through withholding, estimated payments or refundable credits, is more than the tax owed.

See also: Balance due, Refundable credit. More on irs.gov.

The tax still owed after payments and credits are counted. Paying late can add penalties and interest.

See also: Penalties and interest, Installment agreement (payment plan). More on irs.gov.

Charges a tax agency adds for filing late, paying late or paying too little. Interest generally runs on unpaid tax until it is paid.

See also: Penalty relief, Balance due. More on irs.gov.

The last day to file a return, or to request an extension, without a late-filing penalty. Dates differ by type of return and can move for weekends, holidays or disasters; the IRS publishes them each year.

See also: Extension of time to file. More on irs.gov.

Extra time to file a return, requested by the original deadline (for individuals, with Form 4868). It is more time to file, not more time to pay: tax owed is still due by the original deadline.

See also: Form 4868, Filing deadline. More on irs.gov.

A corrected return filed after the original, to fix income, deductions, credits or filing status. Individuals use Form 1040-X.

See also: Form 1040-X. More on irs.gov.

Filing a tax return electronically instead of on paper. A preparer who e-files your return asks you to sign an authorization such as Form 8879.

See also: Form 8879. More on irs.gov.

A person’s status for a state’s income tax. A full-year resident is generally taxed by that state on all income; a part-year resident or nonresident, generally on income tied to the state. Each state sets its own rules.

See also: Multi-state filing.

Filing returns in more than one state, for example after a move, or when someone lives in one state and works or does business in another. A credit may apply for tax paid to another state.

See also: Resident, part-year resident, nonresident (state).

Taxes charged by a city, county or school district on top of state tax. Philadelphia, for example, has its own wage, earnings and business taxes, collected by the City’s Department of Revenue.

See also: Resident, part-year resident, nonresident (state). More on phila.gov.

A cost of running a business that is ordinary and necessary for that trade. Business expenses can reduce taxable business income; personal expenses can’t.

See also: Depreciation, Schedule C. More on irs.gov.

Deducting the cost of property that lasts more than a year, such as equipment or a vehicle, over its useful life instead of all at once. Some rules allow a faster write-off.

See also: Business expense. More on irs.gov.

The difference between what was paid for an asset, such as stock or property, and what it sold for. How long it was held affects how the gain is taxed.

See also: Tax return. More on irs.gov.

Keeping the receipts, statements and other documents that support a tax return. The IRS explains how long different records are kept.

See also: Bookkeeping. More on irs.gov.

A state or local tax on sales of goods and some services, collected by the seller from the buyer and paid to the state. In Pennsylvania it is run by the Department of Revenue.

See also: Business registration. More on pa.gov.

Taxes on wages: income tax withholding, Social Security and Medicare, and unemployment taxes. Employers withhold some and pay some themselves. Always Accounted does not run payroll.

See also: Withholding, Employer identification number (EIN). More on irs.gov.

A letter from the IRS or a state or local tax agency about an account: a balance, a change, a question or a request for information. Each one says what it is about and any deadline.

See also: Response deadline on a notice, CP2000. More on irs.gov.

An IRS notice proposing changes to a return because income or payments reported by others, such as employers or banks, don’t match what was reported. It is not a bill, and it gives a date to respond by.

See also: Notice (letter), Response deadline on a notice. More on irs.gov.

An IRS notice that there is a balance due on the account.

See also: Balance due, Installment agreement (payment plan). More on irs.gov.

An IRS notice that a balance is still unpaid and that the IRS intends to levy (seize) certain property or rights to property if it isn’t paid.

See also: Levy, CP14. More on irs.gov.

An IRS letter asking the taxpayer to verify their identity before the IRS processes a tax return filed with their name and number.

See also: Tax scam (impersonation, phishing), Identity Protection PIN (IP PIN). More on irs.gov.

The date by which an agency asks for a reply, a payment or an action. Asking someone for help does not stop that deadline.

See also: Notice (letter).

A tax agency’s review of a return and the records behind it, by mail or in person. Tax audit support, which we offer, means help with that examination, not an audit of financial statements.

See also: Representation before the IRS, Audited financial statements. More on irs.gov.

An arrangement with the IRS or a state to pay a tax balance over time. Penalties and interest generally continue until it is paid in full.

See also: Balance due, Offer in compromise. More on irs.gov.

Removal or reduction of a penalty, for example for reasonable cause or a first-time penalty, when the agency’s conditions are met.

See also: Penalties and interest. More on irs.gov.

An agreement with the IRS to settle a tax debt for less than the full amount, available only when strict conditions are met.

See also: Installment agreement (payment plan). More on irs.gov.

The government’s legal claim against a taxpayer’s property when a tax debt isn’t paid. It can affect credit and the ability to sell or borrow.

See also: Levy. More on irs.gov.

The legal seizure of property, such as wages or a bank account, to pay a tax debt. A lien is a claim on property; a levy actually takes it.

See also: Federal tax lien, CP504. More on irs.gov.

A summary of tax return or account information from the IRS, available online or by mail.

See also: Notice (letter). More on irs.gov.

An independent organization within the IRS that helps taxpayers, at no cost, with problems they haven’t been able to resolve through normal channels.

See also: Notice (letter). More on taxpayeradvocate.irs.gov.

A fake call, text, email or letter pretending to come from the IRS, a state or a tax professional, to get money or personal information. The IRS starts most contacts by mail and does not call to demand immediate payment by gift card, prepaid debit card or wire transfer.

See also: Letter 5071C, Identity Protection PIN (IP PIN). More on irs.gov.

A letter from Pennsylvania’s tax agency about state taxes, such as personal income tax or sales tax. Like an IRS notice, it says what it is about and any deadline.

See also: Notice (letter), Sales tax. More on pa.gov.

Someone who owns an unincorporated business alone. Business income and expenses usually go on Schedule C with the owner’s Form 1040.

See also: Schedule C, Single-member LLC. More on irs.gov.

A limited liability company with one owner. By default the IRS treats it as part of its owner for income tax (a “disregarded entity”), unless it elects to be taxed as a corporation.

See also: Sole proprietor, LLC taxed as an S corporation. More on irs.gov.

An LLC with two or more owners. By default it is taxed as a partnership, unless it elects to be taxed as a corporation.

See also: Partnership, Schedule K-1. More on irs.gov.

A business owned by two or more people who share its profits and losses. It files an information return (Form 1065), and each partner reports their share from a Schedule K-1.

See also: Schedule K-1, Multi-member LLC. More on irs.gov.

A corporation that elects to pass its income, losses, deductions and credits through to its shareholders, who report them on their own returns. Strict eligibility rules apply.

See also: LLC taxed as an S corporation, Schedule K-1. More on irs.gov.

An LLC that has elected to be taxed as an S corporation. Legally it stays an LLC; only its federal tax treatment changes.

See also: S corporation, Single-member LLC. More on irs.gov.

A corporation taxed separately from its owners. It pays tax on its own profits, and shareholders are taxed on the dividends they receive.

See also: S corporation. More on irs.gov.

Someone who works for clients but isn’t their employee. Contractors usually receive Form 1099-NEC instead of a W-2 and pay self-employment tax.

See also: Form 1099-NEC, Self-employment tax. More on irs.gov.

Someone paid for individual jobs through an app or platform, such as ride-share, delivery or freelance marketplaces. Gig income is taxable whether or not a form is received for it.

See also: Form 1099-K, Independent contractor. More on irs.gov.

Someone who earns money from online content, for example through platform payouts, sponsorships or affiliate income. That income is generally taxable, and many creators are treated as self-employed.

See also: Self-employment tax, Form 1099-K.

Setting up a business with the state, and where needed the city, and getting the tax accounts and identification numbers it needs. Government fees are separate from our professional fees.

See also: Employer identification number (EIN), Sales tax.