| Term |
Definition |
| Fair Market Value (FMV) |
The amount at which
property would change hands between a willing
buyer and a willing seller, neither being under
compulsion to buy or sell and both having
reasonable knowledge of the relevant facts. |
| Fair Rental Value |
The amount the owner of
property could reasonably expect to receive from
a stranger for the same type of lodging;
generally, the amount at which a home with its
furnishings could be rented to a similar size
family in a similar location. |
| Federal Income Tax
Withheld |
The amount withheld from
an employee's wages and submitted by the employer
to the IRS as an advance payment of the
employee's federal income tax. |
| FICA (Federal
Insurance Contributions Act) |
The law that provides
for social security and Medicare benefits. This
program is financed by payroll taxes imposed
equally on the employer and the employee. For
1999, the employer is required to withhold 1.45
percent from each employee's gross wages for
Medicare tax and 6.2 percent of each employee's
wages up to $72,600 for social security tax. |
| Fiduciary |
One who acts for an
estate or trust to manage the property of the
estate or trust. |
| Finance Charges |
Amounts paid for the
privilege of making purchases on a deferred-payment
basis. |
| First In, First Out (FIFO) |
An accounting method for
determining the cost of inventories. Under this
method, the first items purchased are treated as
being the first items sold. Ending inventory is
valued using the cost of later purchases, or the
lower of cost or market. |
| Fiscal Year |
An accounting year
ending on the last day of any month except
December. |
| Foreign Corporation |
A corporation not
organized under the laws of one of the states or
territories of the United States. |
| Foreign Tax Credit or
Deduction |
A credit or deduction
available to a U.S. citizen or resident alien,
and in limited circumstances to a U.S.
nonresident alien, who incurs or pays income
taxes to a country other than the United States. |
| Foster Child |
For tax purposes, a
child other than a natural or adopted child, who
lived with the taxpayer for the entire year and
whom the taxpayer cared for as his own child. The
term foster child does not include a child placed
with the taxpayer by a child-placing agency that
makes payments to the taxpayer as a foster parent. |
| Fringe Benefits |
Compensation or other
benefits received by an employee that are not in
the form of cash. Some fringe benefits (for
example, accident and health plans, and group-term
life insurance) may be excluded from the
employee's gross income and, therefore, are not
subject to federal income tax. |
| Full-Time Student |
An individual who is
enrolled in a school for the number of hours or
courses considered by the school to be full-time.
School includes elementary and secondary schools,
post-secondary colleges, on-the-farm training
courses, and technical and trade schools. It does
not include on-the-job training, correspondence
schools, or night school. However, a student will
not be disqualified by night classes that are
part of a full-time course of study. |
| Fully Taxable
Pensions |
Pensions for which
taxpayers contributed none of the cost or have
recovered their cost in previous years. |
