Form 1099-R
Definition
A US information return reporting distributions from pensions, annuities, retirement plans and similar accounts, used by recipients to report retirement income.
Related Terms in US Tax
Sales Tax vs Use Tax
Sales tax is collected by a seller at the point of sale; use tax is owed by the buyer on taxable goods where sales tax was not charged, such as out-of-state purchases. Use tax prevents avoidance by buying across state lines.
Economic Nexus
A US sales-tax concept where a business must register and collect tax in a state once its sales or transactions there exceed set thresholds, even without a physical presence. It expanded sharply after the Wayfair decision.
1099-K Threshold
The level of payments processed through cards or third-party networks above which a payment settlement entity must issue a Form 1099-K. The threshold has been the subject of phased changes and should be checked for the year.
Estimated Tax Penalty
A US penalty for not paying enough tax during the year through withholding and estimated payments. Meeting a safe-harbor amount based on prior-year or current-year tax generally avoids it.
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