Accounting & Tax Definitions -- Q

Qualified Charitable Organization: An entity, usually an association or nonprofit corporation, designed to provide some form of public charity or service and specifically approved by the U.S. Treasury as a recipient of deductible charitable contributions.

Qualified Pension or Profit-Sharing Plan: An employer-sponsored plan that meets the requirements of IRS Code section 401. If these requirements are met, none of the employer's contributions to the plan are taxed to the employee until distributed to him. The employer is allowed a deduction in the year the contributions are made.

Qualifying Child for the Earned Income Credit: For purposes of the EIC, a qualifying child is your son, daughter, stepchild, adopted child, grandchild, or eligible foster child who is under the age of 19 - or under 24 and a full-time student - or is a totally disabled child of any age and spent at least half of the tax year with you in the United States.

Qualifying Widow(er): The filing status available to a qualified taxpayer for two tax years following the year of the spouse's death. To qualify, the surviving spouse must have been entitled to file a joint return for the year of death, remain unmarried at the end of the current tax year, and pay over half the cost of maintaining his or her home, which was the principal residence the entire tax year of his or her dependent child.

Quorum: The minimum attendance required to conduct business at a meeting. Usually, a quorum is achieved if a majority of directors are present (for directors meetings) or outstanding shares are represented (for shareholder meetings). The percentage needed for a quorum may be modified in the bylaws.