United States Financial Glossary
Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in United States. Updated for 2026.
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Federal Seed Contribution
SavingsA one-time $1,000 Treasury pilot deposit to a Trump Account after election for an eligible US-citizen child born in 2025–28 with a valid Social Security number.
View full definition →Form 843
TaxIRS claim form for a refund or abatement of specified penalties, interest, fees and certain taxes; it cannot replace Form 1040-X for a standard income-tax refund.
View full definition →G
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Qualified Tips (OBBBA)
TaxVoluntary tips in qualifying occupations that may support a federal Schedule 1-A deduction up to $25,000 per return for tax years 2025–28, subject to income and reporting rules.
View full definition →Qualified Overtime Compensation
TaxThe overtime premium (the extra half in time-and-a-half pay) that W-2 employees can deduct from federal income tax, capped at $12,500 for single filers under the OBBBA.
View full definition →T
US financial terms you need to know in 2026
Section 530A Trump Accounts and the 2025–28 tip and overtime deductions added new US tax rules. Existing IRS procedures for penalty relief and protective refund claims have separate forms and deadlines. This glossary explains the account contribution and tax mechanics, Schedule 1-A deductions, and IRS claim routes with the current official limits and exceptions.
Section 530A Trump Accounts and OBBBA deductions
The OBBBA introduced four new above-the-line deductions (tips, overtime, senior, auto loan interest) and a new children's investment account (Section 530A). Each has specific MAGI phase-outs, filing requirements, and interaction rules with existing retirement vehicles. The $5,000 ordinary annual contribution cap excludes the eligible $1,000 federal seed and qualified general contributions; employer Section 128 payments count inside that ordinary cap. On eventual distributions, traditional-IRA basis rules apply. [IRS Form 4547](https://www.irs.gov/instructions/i4547) also lists limited growth-period transfer exceptions.
IRS penalty relief: Form 843, abatement, and protective claims
IRS penalty relief includes First-Time Abate and reasonable-cause requests. A protective refund claim preserves a timely refund claim while a legal issue is unresolved; it is not itself a third penalty-removal programme. Form 843 may be used for some abatement/refund requests, while other claims can use amended returns or different procedures. Form 4547 account elections are available through the IRS online account; Form 843 filing routes depend on its instructions, and an ordinary individual income-tax protective claim generally uses Form 1040-X. [IRS Form 843 instructions](https://www.irs.gov/instructions/i843) distinguish claims.