glossary

GLOSSARY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

E-file

E-file is an IRS program that allows U.S. taxpayers to submit their returns electronically. The benefits of e-filing are expedited processing and reduced paper usage.

Early action

Early action is an optional admission process offered by some universities and colleges. Students can apply to the school earlier and receive a more rapid response on their application. Early action applications are generally due by November 1 of the student's senior year; the school then notifies the student of the decision before January.

Early closing cost reimbursement

Some lenders waive underwriting costs when a line of credit is opened in anticipation of future profits. If the account closed early, the lender may impose those fees retroactively.

Early decision

An opportunity that gives students the chance to apply to colleges and get an answer before the regular admissions deadline. In most colleges, early decision programs require that the student commit to attending the school if accepted under the early decision program.

Early occupancy

This option allows the buyer to move into the property before the sale is closed.

Early termination charge

In auto leasing, a charge that the lessee must pay if the car is turned in before the term of the lease is over.

Early withdrawal

Early withdrawal is the removal of deposited funds prior to a maturity date, or prior to the achievement of a prescribed milestone. Early withdrawal is commonly associated with certificates of deposit (CDs), where funds are supposed to remain on deposit for a fixed time period. If the funds are withdrawn early, the depositor is assessed a penalty fee. Early withdrawal can also refer to the removal of funds from a U.S. retirement account prior to the accountholder reaching the age of 59 1/2.

Early withdrawal penalty

The total sum of the money you earn. This includes any wages, salaries, tips, net earnings (if you're self-employed) and any other income received for personal services. Investment income, such as dividends and interest, are not included as earned income.

Earned income

The total sum of the money you earn. This includes any wages, salaries, tips, net earnings (if you're self-employed) and any other income received for personal services. Investment income, such as dividends and interest, are not included as earned income.

Earned income credit

Earned income credit, or EIC, is a tax credit available to low-income, working households in the U.S.

Earnest money

Money given by a buyer to a seller when making a formal offer to demonstrate that the buyer is serious and committed. This may also be called a deposit.

Earnest money deposit

Initial sum of money given by the buyer to the seller in order to assure the purchase transaction.

Earnings credit rate

The earnings credit rate is a factor used to discount bank service charges for business deposit customers. The rate, which is often tied to the U.S. Treasury bill rate, is applied to a customer's account balance to determine the fee reduction. Customers with large deposits therefore pay lower fees.

Earnings per share

The net earnings of a company's profitability divided by the average number of shares of its common stock. This serves as a way of expressing a corporation's profitability.

Easement

The right to use the land of another for specific purpose as distinguished from the right to possess the land.