Glossary

A tax lien sale is a process where the government sells the right to collect unpaid property taxes. It's important to understand your responsibilities to avoid losing your property.

A tax lien certificate is a legal document that represents a claim against a property due to unpaid property taxes. It's a way for local governments to recoup taxes, and can also be an investment opportunity for some individuals.

An IRS tax lien is a legal claim by the government against your property when you fail to pay your taxes, and it's crucial to understand how it can affect you. It's basically the IRS's way of securing their right to get paid.

A state tax lien is a legal claim by a state government against your property when you don't pay your state taxes. It can create significant financial issues if left unresolved.

A federal tax lien is a legal claim the IRS makes against your property when you fail to pay your taxes. It’s important to understand what this means for you.

A property tax lien is a legal claim against your property for unpaid property taxes. It's important to understand because it can lead to losing your home.

Form 8453 is a document used when you electronically file your tax return but need to submit certain supporting documents to the IRS. It acts like a cover sheet for those extra papers.

Form 8606 is an IRS tax form used to report nondeductible contributions made to a traditional IRA. It helps track the portion of your IRA that wasn't tax-deductible to prevent you from paying taxes twice on the same money.

Form 5498 reports contributions made to your Individual Retirement Arrangement (IRA). It's an informational form, not something you file yourself, but it's crucial for your tax records.

Form 8889 is the IRS tax form used to report contributions, deductions, and distributions related to your Health Savings Account (HSA). Understanding this form is crucial for maximizing your HSA benefits and avoiding tax issues.