Today TaxMama hears from Roland in Oxnard, CA, who tells us “I have some Bear Stearns stock. With the recent collapse of the stock, I’m in the negative by almost $2,000.00. Would it be better to sell my Bear Stearns stock now at a loss, or wait until JPMorgan completes the stock swap? Would the […]
Category Archives: Investments
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit. The Savers Credit formally known as the Retirement Savings Contributions Credit applies to individuals with a filing status and income of: Single with income up to $26,000 Head of Household […]
Today TaxMama hears from Don in Texas who tells us, “My brother and I inherited a house in 2004 from my aunt. Neither of us have ever lived in the house, nor have we rented it out. We sold the house in 2007 for K less that the FMV upon the death of my aunt.buy […]
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 […]
Courtesy of Spidell Publishing Inc. The FTB stated that the instructions for Schedule CA (540 and 540NR), California Adjustments, contain the wrong phase out amounts on line 32 (IRA Deduction) for taxpayers using the married filing joint and qualifying widow(er) filing statuses. In turn, most, if not all, tax software is also using the incorrect […]
Courtesy of the Internal Revenue Service TT-2008-36 Payments that you receive from your IRA or qualified retirement plan before you reach age 59½ are normally called ‘early’ or ‘premature’ distributions. These funds are subject to an additional 10 percent tax and must be reported to the IRS. There are a number of exceptions to this […]
Today TaxMama hears from Louis in South Carolina who says, “I lost $30,000 in an ‘’Investment Pool’’ that turned out to be a Ponzi scheme (see link in Resource Box below). The perpetrator was convicted at the end of 2007. How do I claim this loss on my taxes for 2007?”
Today TaxMama hears from Daisy in South Carolina who says, in these very words. “Need to find information on how to file: No Income but paid taxes on withdrawn retirement account, early withdrawal (59yrs of age) on IRA account, property taxes and bank account interest earned.”
Today TaxMama hears from Matthew in California who tells us. “My dad is going through a divorce. They have finally reached an agreement on what her half of the house, stocks, retirement, etc. is worth. He is paying her $xxx,xxx.00 and he is re-financing the house to do it. Who has to pay income taxes […]
IRS Notice 08-01, recently released, discusses the treatments of various arrangements of health insurance in connection with an S Corporation and its 2% shareholder/employees. This Notice clarifies an issue from two years ago. First a review of law involving the health insurance deductions. Section 162(l) permits a self-employed person, a partner, and an S […]
Today TaxMama hears from Michael who’s got a problem. “Currently, I have a Roth IRA account with Fidelity and want to switch to another financial institute. But I’ve been told there is a fee to do that. I am wondering if there is any do-it-yourself way to transfer my Roth IRA without incurring the early […]
Tax Break Helps Low- and Moderate-Income Workers Save for Retirement IR-2007-187, Nov. 9, 2007 – Courtesy of the Internal Revenue Service WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2007 and the years ahead, according to the Internal Revenue Service. The saver’s […]