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Is interest income taxed when received or earned?
Interest income is considered taxable when earned. For example, if your savings account accrues interest, it is taxable at the time of accrual even if you are not utilizing the funds within the account. However, if you are accruing interest on a treasury bond that you have not yet cashed, the interest is not taxable until the bond is cashed and you receive the funds.
Is ppf interest taxable?
No. It is not taxable
What is the EQ yield of a municipal bond?
The taxable equivalent yield for a muni bond shows what you would have to earn on a taxable bond to equal the after tax return on a muni bond. Example, a muni bond has a EQ yield of 5% and you pay 20% federal income tax. The muni would actually pay interest of 4%. This is because if a taxable bond pays 5% and you pay 20% taxes, you would actually get after tax 4% (20% of 5% is 1%. 5%-1%=4%).
Into what categories are mutual funds known as bond funds divided?
Main categories in taxable bond funds are corporate bond funds, high-yield funds, world bond funds, government bond funds, and strategic income funds. The main tax-free bond fund categories are state municipal bond funds
How much is the amount of interest one can earn on investments before it is taxable?
ALL investment interest (presumingly from investments that are not entirely tax exempt, like state & muni bonds), is taxable from the first penny. How much tax you ultimately pay depends entirely on your own personal income/expense/deductions/tax situation
Is interest income taxed when received or earned?
Interest income is considered taxable when earned. For example, if your savings account accrues interest, it is taxable at the time of accrual even if you are not utilizing the funds within the account. However, if you are accruing interest on a treasury bond that you have not yet cashed, the interest is not taxable until the bond is cashed and you receive the funds.
Is interest on bank account taxable or non taxable?
Taxable, of course. Virtually all interest income is taxable, unless fro a specific tax exempt type investment..like state and muni bonds.
Is ppf interest taxable?
No. It is not taxable
If you receive a refund on state income taxes that includes interest the interest is nontaxable if the refund is not taxable?
First, a refund of State Income Tax, was deductible when it was paid (and presumably taken as a deduction), and IS taxable when refunded. (You took a tax benefit when paying it, so you have to give back that same tax benefit when you get the tax (or some portion of it) refunded). I can see no reason that the interest wouldn't be taxable. Only certain interest, (from specifically declared but not all Municipal and some other bonds), is not taxable. Otherwise, the source of the interest does not effect it's character as interest, which is taxable. The fact it may be from a government doesn't mean much. Certainly lots of people get paid lots of things from the government that are taxable.
What is the EQ yield of a municipal bond?
The taxable equivalent yield for a muni bond shows what you would have to earn on a taxable bond to equal the after tax return on a muni bond. Example, a muni bond has a EQ yield of 5% and you pay 20% federal income tax. The muni would actually pay interest of 4%. This is because if a taxable bond pays 5% and you pay 20% taxes, you would actually get after tax 4% (20% of 5% is 1%. 5%-1%=4%).
Are life insurance benefits taxable in MN?
The death benefit itself will not be considered taxable income. However, if your state requires that the life insurance company pay interest on the death benefit if the claim isn't processed in a certain period of time, then the amount of interest is considered taxable.
Interest on City of Boston Bonds - are they Taxable or non-taxable?
No city bonds are taxable
Are some municipal bonds taxable?
Yes, it should be reported on your tax return. In general, interest from a municipal is not taxable, but it could affect other items on your return, or be taxable in your state. Proceeds from the sale of a muni bond could be taxable if there is a gain on the sale. This question is too complex to be fully answered in this forum. As always, consult with a tax professional for specific answers. CPA Greg
Are certificate of deposits taxable?
No, the monies that are in your Certificate of Deposit are not taxable but the interest that you make on the deposited monies are taxable. You should receive a 1099-B each for the amount of interest made on the CD for the year. http://taxresolutionaries.blogspot.com
If opening a small savings account with cash not earned income how do you avoid paying taxes on interest?
You CAN NOT avoid reporting the interest that is received during the year from your savings account and adding the amount to all of your other gross worldwide income and paying federal income tax on the amount at your marginal tax rate after your 1040 federal income tax return is completed correctly. And to the essense of yoru question, I believe your confused about what is taxable income. EARNED income may be taxable (generally is) and UNEARNED income (in the vernacular) is ALSO taxable the same way...it is all taxable income. And certainly interest is taxable income (unless it is from a specifically none taxable type of investment, like a State/Municipal bond) , regardless of the source of the underlying deposit.
Why some bonds are taxable in Federal as well State?
Nearly all bonds are taxable both federal and state. To be exact, the interest the bonds pay is taxable (as well as any capital gain resulting from trading bonds). The reason is that the tax code taxes interest. Bonds are a way of borrowing money and paying interest to the lender. Bonds issued by the federal government are exempt from state taxes. Bonds issued by states and municipalities are mostly exempt from federal taxes (and exempt from taxes in the state that issued them in some states).
Is territorial interest taxable?
yes
