Tag Archives: Dividend

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, […]

Tax Rules for Children Who Have Investment Income

Courtesy of the IRS   Some children receive investment income and are required to file a federal tax return. If a child cannot file his or her own tax return for any reason, such as age, the child’s parent or guardian is responsible for filing a return on the child’s behalf. There are special tax […]

NV LLC Operating in CA

Today TaxMama® hears from Janet in the TaxQuips Forum, with this question.  “Is an LLC registered in NV and doing business in CA required to pay California’s $800 LLC taxes?”

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 […]

Foreign Tax Credit

Today TaxMama hears from Yannig in the TaxQuips Forum, who is frustrated. “I paid foreign tax on dividends and interest earned abroad. The gains from foreign interest and dividends are more than offset by losses on stocks. So my total passive income is less than zero. Does that mean my maximum foreign tax credit is […]

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.”

Roth Reinvesting Error

Today TaxMama hears from Sylvia in Texas with a problem. “In 1998 my husband converted his IRA holdings to a Roth account. The brokerage company continues to place dividends in a MM account saying they have no record of his wanting the dividends reinvested and it’s too late now. Unfortunately, our records were on thermal […]

Tax Rates for a Child’s Investment Income

Courtesy of the Internal Revenue Service TT-2008-38 Part or all of a child’s investment income may be taxed at the parent’s rate rather than the child’s rate. Because a parent’s taxable income is usually higher than a child’s income, the parent’s top tax rate will often be higher as well. This special method of figuring […]