Category Archives: Dividends

Qualified Dividends

Today TaxMama® hears from Rogers in the TaxQuips Forum, with this question. “My 1099 DIV form shows that I received $2,345.60 in dividends from a typical domestic stock index fund. But what is unclear is, should the dividend be taxed at capitals gains rates, if it’s a qualified dividend? Or should it be taxed at regular […]

Living Tax-Free

Today TaxMama® hears from Clifford in the TaxQuips Forum, with an excellent question. “I was told in an investment class that dividend income and social security income could be “blended ” to reduce taxes. We were told that up to $70,700 dollars could be sheltered from taxes. When we asked how this could be done, […]

Mutual Fund Fees

Today TaxMama® hears from Farmer in the TaxQuips Forum, with a reasonable question.  “Can you take a deduction of Mutual Fund operating expenses (12b fees?) on Schedule A, subject to the two-percent floor?”

Foreign Taxes and Basis

Today TaxMama® hears from RJ in the TaxQuips Forum, who asks an intriguing question. “I understand that both reinvested dividends and reinvested capital gains distributions get added into a mutual fund’s Cost Basis. But what about Foreign Tax Paid? Does Foreign Taxes Paid also get directly added into a fund’s Cost Basis?”

Tax Rules May Affect Your Child’s Investment Income

Courtesy of the IRS Parents may not realize that there are tax rules that may affect their child’s investment income. The IRS offers the following four facts to help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate. 1. Investment income Children with investment income may […]

Virgin Islands Investing

Today TaxMama hears from Tom in the Tax Quips Forum, who has gotten bad advice. “I started investing in an online program that is registered in the British Virgin Islands. They say that this program is exempt from the US Securities Act of 1933, the US Securities Exchange Act of 1934 and the US Investment Company […]

No Tax on Dividends?

Today TaxMama hears from John in the TaxQuips Forum, who lays out his issue. (shortened) “I’m amending my 2009 Form 1040 return and have a question about the result I am getting on the Qualified Dividends and Capital Gains Tax Worksheet. Despite having qualified dividends of $45,224, I keep ending up with 0 tax. Can […]

Capital Gains Rates

Today TaxMama hears from TW in the TaxQuips Forum who wants an update. “Does any one know how much is the tax on stocks gains and dividends earned from stock.”