Accounting & Tax Definitions -- W

Walk-In Electronic Filing: If you need help preparing your taxes visit the Volunteer Income Tax Assistance (VITA) office nearest you. Many VITA offices have IRS representatives who can help you fill out your forms and then transmit the information on your forms electronically.

Warrant: A certificate authorizing the holder to buy a corporation's stock at a specified price, either indefinitely or within a certain time. Warrants are different from rights in that they generally last longer, and the price at which the holder is entitled to buy the stock usually is more than the stock's market price when the warrant was issued.

Wash Sale: The purchase of substantially similar stock or other securities within 30 days before or after the sale of the similar stock or security at a loss. A taxpayer cannot claim a wash sale loss; instead, the loss is added to the basis of the most recently purchased substantially similar securities.

Welfare to Work Credit: A tax credit for employers who hire workers off welfare rolls.

Widow: A woman who has not remarried following the death of her husband.

Widower: A man who has not remarried following the death of his wife.

Withholding ("Pay-as-you-earn" taxation): Your employer takes out a certain amount from your check for the government. You are credited for these taxes when you file your return. This money is used to pay for your federal income taxes, federal social security, and Medicare taxes, and state and local income taxes.

Withholding Allowance: When you fill out the Form W-4 your employer can figure out the total amount in taxes to deduct from your.

Working Interest: An operating interest in oil and gas in place that is burdened with the responsibility and cost of developing and operating the property.

Worksheet: A record of compiled information that is generally not sent to the IRS with a tax return.

Worthless Securities (i.e., Stock): A loss is allowed for a security that becomes worthless during the year. The loss is deemed to have occurred on the last day of the year. Special rules apply to securities of affiliated companies and small business stock.

Write-off: To transfer an item that was an asset to an expense account (for example, to transfer an uncollectible account receivable to bad debts expense).