Category Archives: Income
The Employee Retirement Income Security Act (ERISA) of 1974 requires compensation plans to follow certain requirements in order to be considered “qualified”. A 401(k) plan typically meets all of these requirements, and is considered a qualifying deferment compensation plan under the standards of the ERISA. A 401(k) is one in which your employer adds a […]
— Read moreThere’s a chance you may not have to file a tax return if your Social Security or equivalent railroad retirement benefits are the only source of income you’ve received throughout the tax year. If you have received additional forms of income, the aforementioned benefits are typically tax-free providing your modified adjusted gross income (MAGI) is […]
— Read moreIt can be a great feeling to get a scholarship or grant to help fund your education. A scholarship is typically an amount paid to a student for a specific institution for study. A fellowship grant is similar, except that the money paid can be used for the purpose of study or research. There are […]
— Read moreThose who like to gamble should be aware of how casual gaming can affect your taxes. Any money you win through gambling is fully taxable and must be reported to the IRS at tax time. There are several types of gambling winnings: lotteries, raffles, horse races, and casinos. Along with straight cash winnings, gambling income […]
— Read moreUnemployment benefits are taxed depending on the type of program you are receiving the benefits from. Compensation amounts from unemployment include any income received according to either the federal or state laws of the United States. This compensation can include: State unemployment insurance benefits Benefits paid from the Federal Unemployment Trust Fund Railroad unemployment compensation […]
— Read moreWithdrawing money or assets from an eligible retirement plan and transferring it to another eligible plan can result in a rollover, provided the transfer happens within sixty days. The actual transaction is not taxable, however it is reported on your tax return to the IRS. Some distributions are not eligible to be rolled over. These […]
— Read moreWhen collecting retirement allowances through annuity or pension payments from a qualified employer retirement plan, it’s important to note that all or some allocation of the amounts you accept may be subject to taxation. The benefits that you collect are completely taxable if you accept no investment in the contract because any of the following […]
— Read moreCapital assets include basically everything you own for either personal or investment purposes. Some examples of capital assets are homes and household furnishings and stocks or bonds used as investments. Selling a capital asset can either result in a capital gain or a capital loss. It depends on the difference between the basis of the […]
— Read moreDo you own stock in any corporations? If so, you may receive dividends from the company as distribution of the property you own. Typically, dividends are paid in cash, although some corporations chose to pay dividends by offering stock in another corporation or through property. Dividends can also be received through partnerships, trusts, estates, associations […]
— Read moreAny interest paid to you or credited to an account is considered taxable income when you can withdraw the amount without facing any penalties. It becomes taxable the year in which it is available to you. Sometimes, interest you receive may be considered tax-exempt. You’ll receive a Form 1099-INT or Form 1099-OID if you have […]
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