Tax Breaks on Dividends Ends in 2012
This post explains two tax breaks on stock and mutual fund “qualifying dividends” (explained below) scheduled to end December 31, 2012 Income from savings and investments help retirees meet their retirement income needs. Traditionally, the well-to-do have chosen municipal bonds for their tax-free income. But due to their tax-free status, municipal bonds typically pay a considerably reduced rate of interest [...]
Categories: tax breaks Tags: 2012 tax breaks, capital gains, income tax rates, qualifying dividends
Tax Planning With Your Investments
Beyond fees and transaction costs, most all investments are subject to taxation – and this represents more expenses for you that can reduce your net return. Let’s see what’s taxed and when. By understanding how different investments are taxed, you are able to do tax planning and thereby maintain money that others pay to IRS. The federal government taxes you [...]
Categories: tax planning Tags: capital gains, income tax rates, mutual funds, ordinary income
Income Tax Relief – 2012 Last Year to Use This Option
One significant source of income tax relief for taxpayers in the lowest 2 tax brackets is the elimination of both the long-term capital gains tax and qualifying dividend* tax through 2012. This income tax relief pertains to the 10% and 15% tax brackets in which numerous retired people find themselves. Long term capital gains tax – to which the income [...]
Categories: income tax relief Tags: 0% tax rate, capital gains, qualifying dividends
