What do investments go under for taxes?
Posted by admin on 19 Jul 2008 7:09 pm. Filed under United States.
Matt asked:
Like profits from the sale of stock and dividends from a cd/bank account/stock/mutual fund? The reason I am asking is because I want to stay in a lower tax level and I might increase my tax deffered IRA account inorder to stay in the lower level. I am getting pretty close.
Do capital gains affect what tax bracket I will fall into?
Like profits from the sale of stock and dividends from a cd/bank account/stock/mutual fund? The reason I am asking is because I want to stay in a lower tax level and I might increase my tax deffered IRA account inorder to stay in the lower level. I am getting pretty close.
Do capital gains affect what tax bracket I will fall into?
On July 22nd, 2008 at 10:56 am
Capital Gains
On July 23rd, 2008 at 12:38 am
Profits from the sale of stock: Capital Gains.
Interest on a CD or bank account: Interest income
Dividends on mutual fund: Dividends
Regardless of where your investments are recorded, you can reduce your taxable income by increasing IRA contributions as allowed.
Long-term (over 1 year) capital gains and qualified dividends will usually not increase your tax bracket. Short-term capital gains and interest income are taxed at your regular rate and may put you in a higher bracket.