0
What else can I help you with?
What is the difference between deductions for AGI and deductions from AGI when calculating taxable income?
Deductions for AGI are subtracted from your total income to arrive at your adjusted gross income (AGI), while deductions from AGI are subtracted from your AGI to determine your taxable income. Deductions for AGI include items like student loan interest and educator expenses, while deductions from AGI include items like medical expenses and charitable contributions.
What are some common capital gains questions that individuals should consider when investing in the stock market?
Some common capital gains questions to consider when investing in the stock market include: How long do I plan to hold the investment before selling it? What is the tax rate on capital gains for my income bracket? How will capital gains impact my overall investment strategy and financial goals?
Do you pay capital gains on dividends?
No, you do not pay capital gains tax on dividends. Dividends are typically taxed at a different rate than capital gains.
Can you provide some examples of capital gains and losses?
Examples of capital gains include profits from selling stocks, real estate, or valuable collectibles. Capital losses can occur when selling an asset for less than its purchase price, resulting in a financial loss.
Can charitable donations be used to offset capital gains?
Yes, charitable donations can be used to offset capital gains by deducting the value of the donation from the capital gains realized during the tax year. This can help reduce the tax liability on the capital gains.
Do you have to pay capital gains tax in IL?
Illinois income tax is based on your federal Adjusted Gross Income (AGI), plus a few state adjustments. If the capital gain is included in your federal AGI, you will also pay state tax on it. There is no special Illinois state tax rate for capital gains, it is taxed at the same rate as ordinary income.
If you sell stock that you have held for at least one year what is the maximum capital gains rate?
The maximum federal rate is 15%.The maximum state rate varies by state.However, keep in mind that your capital gains are part of your AGI. A high AGI can cause various deductions to be phased out. A high AGI can also cause a higher percentage of your Social Security benefits to become taxable. It can also cause you to become ineligible for the Savers Tax Credit or EIC, for example. So, although the nominal maximum tax rate is 15%, there may be other side-effects that cause other taxes to go up.
What is the difference between deductions for AGI and deductions from AGI when calculating taxable income?
Deductions for AGI are subtracted from your total income to arrive at your adjusted gross income (AGI), while deductions from AGI are subtracted from your AGI to determine your taxable income. Deductions for AGI include items like student loan interest and educator expenses, while deductions from AGI include items like medical expenses and charitable contributions.
What are some common capital gains questions that individuals should consider when investing in the stock market?
Some common capital gains questions to consider when investing in the stock market include: How long do I plan to hold the investment before selling it? What is the tax rate on capital gains for my income bracket? How will capital gains impact my overall investment strategy and financial goals?
If there is excess short term capital lose after offset against short term capital gains can excess lose be carried to the next tax year?
Short-term capital losses for individuals are limited to a $3,000 deduction per year (for AGI), they have an indefinite carry forward to future's year netting.
What do the top 1 percent earners make in the us?
According to the National Taxpayers Union, the AGI (Adjusted Gross Income) of the bottom of the top 1% in 2008 was $380,354. AGI is Total Taxable Income minus various items such as pension contributions, alimony paid etc etc. Since it is "taxable income it does not include such things as interest on Tax free municipal bonds or Capital Gains, which is taxed in a different category. While the person at the bottom of this 1% had AGI of $380,354, (and now we're switching to 2007 figures) the person at the bottom of the top .74% of earners had an AGI of $500,000 or more. The top one quarter of one percent (.278% to be precise) had AGI of $1,000,000 or more. In the US in 2007 there were about 138 million taxpayers, so there should be about1,380,000 taxpayers with AGI north of $380,000: 383,640 taxpayers with more than $1,000,000 in AGI. Almost 18,000 taxpayers have (had) an AGI north of $10,000,000.
Do you pay capital gains on dividends?
No, you do not pay capital gains tax on dividends. Dividends are typically taxed at a different rate than capital gains.
How much is the capital gains tax in Ohio?
A capital gains tax is applied to the sale of financial assets. The capital gains tax in Ohio is 15 percent.
How much is the US capital gains tax?
Capital gain taxes are based in large part on your ordinary tax rate.... * Ordinary tax rate 10%, long term capital gains tax 0%, short term capital gains tax 10% * Ordinary tax rate 15%, long term capital gains tax 0%, short term capital gains tax 15% * Ordinary tax rate 25%, long term capital gains tax 15%, short term capital gains tax 25% * Ordinary tax rate 28%, long term capital gains tax 15%, short term capital gains tax 28% * Ordinary tax rate 33%, long term capital gains tax 15%, short term capital gains tax 33% * Ordinary tax rate 35%, long term capital gains tax 15%, short term capital gains tax 35%
Can you provide some examples of capital gains and losses?
Examples of capital gains include profits from selling stocks, real estate, or valuable collectibles. Capital losses can occur when selling an asset for less than its purchase price, resulting in a financial loss.
Is dividend ordinary income?
Most dividends are. However, long term capital gains distributions from a mutual fund are capital gains. Liquidating dividends and return-of-capital dividends can be capital gains. And, to make matters more confusing, some dividends, knows as "qualifying dividends," are taxed at long term capital gains rates even though they are not capital gains.
Can charitable donations be used to offset capital gains?
Yes, charitable donations can be used to offset capital gains by deducting the value of the donation from the capital gains realized during the tax year. This can help reduce the tax liability on the capital gains.
