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Is there a Federal deduction for state back tax payments?
State income taxes are deductible from Federal taxable income in the year they are paid, regardless of when they were due.
What percentage rate do we pay on taxes?
The tax rates paid for individuals in the United States ranges from 10% to 39.6% for federal income taxes. This rate is multiplied by your taxable income. You taxable income is after you deduction your exemptions for each dependent in your household and your self, then you deduct either your itemized deduction or standard deduction. This gives you your tax due. There are also several credits that can further reduce your overall tax, then you reduce it further by applying your withholding taxes that you paid into the system during the tax year. After this, you may have to pay more or you may get a refund if you paid more than was due.
Is the 2008 interest earned on a Traditional IRA counted as interest income on your 2008 income tax submittal?
No. All taxes on interest, dividends, and capital gains in a traditional IRA are deferred. No taxes are due until you withdraw from a traditional IRA, when it is counted as ordinary income (not income which is distinguished by whether it is from interest, dividends, or capital gains), which is taxed based on your adjusted gross income in the year they are withdrawn. If you withdraw before age 59.5, you owe an additional 10% penalty. Contributions to a Traditional IRA made either in 2008 or on or before April 15, 2009, are deductible from your 2008 taxable income. However, there are limits to these contributions which depend on a host of factors. You cannot contribute more than $5000 total ($6000 if you are age 50 on December 31, 2008) to both a Traditional and Roth IRA. If you make over $105,000/year ($159,000 if married filing jointly), your ability to contribute to a Roth IRA is reduced or eliminated. However, no restriction based on income exists for a Traditional IRA. You can always contribute $5000 (or $6000 if age 50) to a Traditional IRA.
If you contribute 70000 to roll over IRA how much can you deduct filing jointly?
First a $70,000 move of funds from a qualified plan to an IRA is not actually a contribution. It is a rollover or transfer from one custodian to another and is a non-taxable event. Therefore, whether the tax filing status is joint, single, head of household or something else, no deduction is due from the movement of these funds from the employer's plan to an individual's IRA.
How do you compute the personal income tax?
Income Tax DSC, Digital Signature for Income Tax, Return e Filing, ITR to authenticate your identity electronically, Get Class 3 digital signature for Income Tax to save your privacy. You can easily submit your Income-tax with the help of DSC (digital signature for income tax).
Is there a Federal deduction for state back tax payments?
State income taxes are deductible from Federal taxable income in the year they are paid, regardless of when they were due.
What are IRA withdrawals, and how do I perform one?
All withdrawals from a traditional IRA before age 59 1/2 are considered early withdrawals. If you take an early withdrawal from your traditional IRA, then in addition to any regular federal income or state income tax due on the withdrawal, you also need to pay an additional 10% tax penalty.
What percentage rate do we pay on taxes?
The tax rates paid for individuals in the United States ranges from 10% to 39.6% for federal income taxes. This rate is multiplied by your taxable income. You taxable income is after you deduction your exemptions for each dependent in your household and your self, then you deduct either your itemized deduction or standard deduction. This gives you your tax due. There are also several credits that can further reduce your overall tax, then you reduce it further by applying your withholding taxes that you paid into the system during the tax year. After this, you may have to pay more or you may get a refund if you paid more than was due.
How can you convert an IRA into a roth IRA?
Yes, this can be done. Typically, the account-owner simply opens a new Roth account and requests the custodian to move the funds at the request of the traditional IRA owner. Penalties will generally not apply, however, federal and state income taxes may generally be due at the account-owner's individual marginal tax rate. All amounts converted from the traditional IRA to the Roth IRA will show up as ordinary income on the account-owner's 1040 in the year of conversion.
Is the 2008 interest earned on a Traditional IRA counted as interest income on your 2008 income tax submittal?
No. All taxes on interest, dividends, and capital gains in a traditional IRA are deferred. No taxes are due until you withdraw from a traditional IRA, when it is counted as ordinary income (not income which is distinguished by whether it is from interest, dividends, or capital gains), which is taxed based on your adjusted gross income in the year they are withdrawn. If you withdraw before age 59.5, you owe an additional 10% penalty. Contributions to a Traditional IRA made either in 2008 or on or before April 15, 2009, are deductible from your 2008 taxable income. However, there are limits to these contributions which depend on a host of factors. You cannot contribute more than $5000 total ($6000 if you are age 50 on December 31, 2008) to both a Traditional and Roth IRA. If you make over $105,000/year ($159,000 if married filing jointly), your ability to contribute to a Roth IRA is reduced or eliminated. However, no restriction based on income exists for a Traditional IRA. You can always contribute $5000 (or $6000 if age 50) to a Traditional IRA.
If you contribute 70000 to roll over IRA how much can you deduct filing jointly?
First a $70,000 move of funds from a qualified plan to an IRA is not actually a contribution. It is a rollover or transfer from one custodian to another and is a non-taxable event. Therefore, whether the tax filing status is joint, single, head of household or something else, no deduction is due from the movement of these funds from the employer's plan to an individual's IRA.
If you made a mistake and opened a Traditional IRA using post tax dollars and want to withdraw the funds can you do that without a penalty I assume paying taxes on any capital appreciation?
Assumning you are in the same tax year or have not yet filed your tax return for the tax year in which you made the IRA contribution, yes.From IRS Pub. 590 (2008), Individual Retirement Arrangements, adjusted to reflect 2009 tax year dates:If you made IRA contributions in 2009, you can withdraw them tax free by the due date of your return (April 15, 2010.) If you extend your 2009 return, you can withdraw them tax free by the extended due date (October 15, 2010.) You can do this if, for each contribution you withdraw, both of the following conditions apply.You did not take a deduction for the contribution.You withdraw any interest or other income earned on the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. If there was a loss, the net income earned on the contribution may be a negative amount.In most cases, the net income you must withdraw is determined by the IRA trustee or custodian.See the attached links for more info.
How high are ira withdrawal penalties?
You don't actually have to pay a penalty when you withdraw from your IRA. You just have to withdraw your annual allowed contribution before taxes come due to avoid the penalty. You can also withdraw excess contributions with no penalty.
Do you get money back on lost stock?
It is not that you get a "refund" - which, among other things, requires that you had paid tax in (by estimate or witholding) that was in excess of what was actually due. Investment losses, within certain limits, are a deduction to your taxable income for that year...by lowering your taxable income, you have a lower tax due. (Exactly the oppposite of investment gains...which increase your taxable income and you pay tax on).
How can a bank take your IRA and send it to Indiana unclaimed money when the IRA does not come due for 3 years?
The bank should not take your money and send it to Indiana's unclaimed funds division on an active IRA. Send a letter to the bank requesting information on why this was done. It may be that there is a clause requiring them to turn the money over to the state if the IRA is inactive for a certain period of time.
Does net income on balance sheet come from income statement?
Yes income in balance sheet is the same amount which is calculated in income statement if there is any difference then it may be due to distribution of net income between retained earnings and dividend.
Where to find an ira rollover?
Ira Rollover's are available in-store, or sometimes even online. Online Ira Rollover's are very easy to find, due to the fact of how popular that they've become.
