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Internal Revenue Code of 1986

The main body of federal tax law in the United States.

Taxable year

The annual accounting period for which a taxpayer reports income and expenses; for most individuals, this is the calendar year.

Deduction

An amount that can be subtracted from a taxpayer's gross income to reduce the amount of income subject to tax.

Personal casualty loss

A loss of property resulting from a sudden, unexpected, or unusual event, such as a fire, storm, shipwreck, or theft.

Theft loss

A loss resulting from the taking of money or property with criminal intent, including fraud, deceit, or misrepresentation.

Period of limitation for credit or refund claims

The legal deadline by which a taxpayer must file a claim with the IRS to receive a tax refund or credit.

Early withdrawal penalty

A 10% additional tax typically applied to withdrawals from retirement accounts (like 401(k)s or IRAs) made before age 59½, unless an exception applies.