The Tax Questions Blog

Archive for December, 2008

The Bogleheads' Guide to Retirement Planning $8.88 The Bogleheads are back-with retirement planning advice for those who need it!Whatever your current financial situation, you must continue to strive for a viable retirement plan by finding the most effective ways to save, the best accounts to save in, and the right amount to save, as well as understanding how to insure against setbacks and handle the uncertainties of a shaky economy.Fortunately, t...

The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today $14.99 Investment professional Larry E. Swedroe describes the crucial difference between "active" and "passive" mutual funds, and tells you how you can win the investment game through long-term investments in such indexes as the S&P 500 instead of through the active buying and selling of stocks. A revised and updated edition of an investment classic, The Only Guide to a Winning Investment Strategy You'll...

What Every Fidelity Investor Needs to Know $5.94 Fidelity offers investors some of the most innovative financial tools, products, and platforms currently available, and with What Every Fidelity Investor Needs to Know, James Lowell—one of the most trusted names in the investment business and a self-described Fidelity fanatic—will help you get the best out of what Fidelity has to offer; whether it be through taxable accounts, IRAs, or 401(k)s....

Better late than never on college savings plan

Your child is in high school. Is it too late to start a 529 college savings plan? The reluctance to dive in so late in the game is understandable, given the stock market swoons in the past two years. You might worry about not recovering from any turbulence in time.

Taxable Accounts.avi

Question: as an officer of a company who is workman's comp exempt can i file a 1099 form with the IRS?

Answer: Please explain - do you want to file a 1099 in regards to the compensation that you receive as an officer of the corporation? In that case, probably so because you will not be receiving a W2.
It depends though - are you an officer of a C corp? Subchapter S?
Best to check with the company's accountant on this question.

Readers' questions on paid leave, state's debt

Today I'll answer questions from readers on paid family leave, the state's debt rating and earthquake insurance. Q: Stacey H. writes, "I read with interest your (Feb. 9) column, "How joblessness affects your income taxes." I was doing my taxes and noticed... Income tax - Insurance - Financial services - Business - Home

Question: On fixed income investements are the monthly dividend payouts taxed at the 15% dividend rate or is it income?

Are the monthly dividends considered straight income ot be added to your yearly income or are these texed at 15% rate. I am talking about taxable fixed income investments.

Answer: The first thing you need to do is look at the prospectus for the fixed income investment and see what is generating the income. Most of these investments generate income from bonds.

Most of that income is going to be interest. Sometimes the payments are called dividends but are in fact interest.

Interest income gets no tax break whatever it is called. It will be added to your other income and taxed as ordinary income.

If you have some kind of taxable investment that is based on dividend-paying stocks, and you get a monthly check for that, then those could be dividends for IRS purposes. If those dividends are from most domestic corporations, they are mostly "qualified" to be taxed at a maximum of 15%.

This second scenario is not very likely because an investment that is going to pay you a fixed income is more likely based on fixed income investments, namely bonds.

If your investment is going to be paying you back your original contribution over time, that has tax implications as well and you should consult with a tax professional knowledgable about taxable annuities to figure the taxes on the payments you will receive.

Evergreen Mutual Fund Library 5 VHS Videos: Tax Free Investing / Balanced Investing / Growth Investing / Growth & Income Investing / International & Global Investing [5 VHS Videos] $199.99 Five VHS Videos from the Evergreen Mutual Library. Includes: Tax Free Investing. Balanced Investing. Growth Investing. Growth & Income Investing. International & Global Investing. Evergreen Funds is a broadly diversified asset management organization, with products and services distributed across several lines of business...managing diverse investments such as institutional portfolios, mu...

Installment/lump-sum benefits election. (tax rule on shadow stock benefits of employees not actually received as non-taxable) (Brief Article): An article from: The National Public Accountant $5.95 This digital document is an article from The National Public Accountant, published by National Society of Public Accountants on September 1, 1991. The length of the article is 452 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web ...

Amend Internal Revenue Code of 1986 to increase maximum taxable income for 15% rate bracket, provide partial exclusion from gross income for dividends ... deduction, increase IRA contribution limit. $9.47 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover...

/ CORRECTION - Putnam Announces Dividend Rates for Multi-Class Open-End Funds

BOSTON, MA--(Marketwire - 01/07/10) - In the news release, "Putnam Announces Dividend Rates for Multi-Class Open-End Funds," issued on December 30, 2009 by Putnam Investments, we are advised by the company that all funds are now designated "investment income" that had been listed as "long-term capital gain." Also, the distribution rate for Putnam Retirement Ready 2035 Fund - Class B Shares ...

Question: Transfer IRA to children, Taxable?

My father is planning to transfer his IRA to me and my sisters IRA or UGMA/UTMA, equally.
He is not yet in retirement age. (below 65)

Is the transfer taxable?

*As far as I have heard, if he withdraws the IRA below retirement age, he would be taxable and we would be taxed as gifts.

Answer: He can't transfer an IRA it is for his retirement. At age 59.5 he can withdraw and pay taxes before that he pays a penalty also.

Understanding Your Tax Returns: Your Social Security And Retirement Benefits Understanding Your Tax Returns is a new series of tax publications designed to help taxpayers across the USA. The objective of these publications is to help taxpayers to understand United States income tax code as far as Form 1040; US Individual Tax Returns is concerned. With a good basic knowledge of the tax code, taxpayers will potentially be in the position to literally increase their income ta...

Investing for Retirement $2.99 Investing for Retirement explains how decisions you make during your working life can help ensure you'll have a more financially secure retirement. The guide discusses personal investing goals, explores ways to use asset allocation and diversification to offset investment risk, and explains the role of both taxable and tax-deferred investments in you portfolio. Equally important, the guide looks a...

How to convert a million dollar taxable IRA to ten million dollars of tax-free cash without risk.(individual retirement accounts): An article from: The National Public Accountant $5.95 This digital document is an article from The National Public Accountant, published by National Society of Public Accountants on August 1, 2003. The length of the article is 2817 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web br...

Looking to the future: tips on having a financially-healthy 2010

The presents have long since been opened and the glowing ball in Times Square welcomed in 2010 two days ago.

Missed Fortune Radio - An All Too Common Tale: Higher Taxes in Retirement