Glossary
Tax Preparer Terms & Vocabulary
15 essential tax preparer terms with plain-English definitions: the vocabulary you’ll hear in training and on day one.
Key tax preparer vocabulary
These 15 terms come up constantly in tax preparer training, on the job and in interviews. Knowing them helps you follow instructions, document accurately and sound prepared.
- 1099
- A form reporting non-wage income.
- Amended return
- A return that corrects a previously filed return.
- Dependent
- A person claimed on a return.
- Due diligence
- Required steps to verify eligibility for certain credits.
- E-file
- Electronic filing of returns.
- Enrolled Agent
- A tax professional licensed by the IRS.
- Filing status
- Single, married filing jointly and other categories.
- Itemized deductions
- Specific deductions such as mortgage interest and charitable gifts.
- PTIN
- Preparer Tax Identification Number.
- Refundable credit
- A credit that can create a refund.
- Schedule C
- The form for sole proprietor business income.
- Self-employment tax
- Social Security and Medicare tax for self-employed people.
- Standard deduction
- A fixed deduction most filers can take.
- Tax credit
- A dollar-for-dollar reduction in tax.
- W-2
- A wage and tax statement from an employer.
Practice these terms
Test yourself with the free Tax Preparer practice test: it includes vocabulary questions built from this list. For a complete course, see Tax Preparer training.
Browse terms from every career in our career glossary.