Sentences with phrase «federal income tax if»

Any gains from your life insurance policy is subjected to federal income tax if you are the policy owner.

This «tax - exempt» status means that an organization is exempt from federal income tax if it supports charitable, religious, educational, scientific, literary and a number of other causes.

Beginning with Bonds purchased in 1990, the interest earned on Series EE Savings Bonds can be excluded from Federal Income Tax if you pay tuition and fees at colleges, universities, and qualified technical schools during the same year the Bonds are cashed.

However, your income can affect your ability to deduct your Traditional IRA contributions from your federal income tax if you belong to a retirement plan at work (as all federal employees do).

The first $ 1,050 of the account's unearned income (interest, dividends or capital gains) is exempt from federal income tax if the child is under age 18 at the end of the tax year.

With a traditional IRA, your contribution may reduce your taxable income and, in turn, your federal income taxes if you are eligible for the tax deduction.1 Earnings can grow tax deferred until withdrawn, although if you make withdrawals before age 59 1/2, you may incur both ordinary income taxes and a 10 % penalty.

You can claim a boyfriend or girlfriend as a dependent on your federal income taxes if that person meets the Internal Revenue Service's definition of a «qualifying relative.»

You can claim a boyfriend or girlfriend as a dependent on your federal income taxes if that person meets the IRS definition of a «qualifying relative.»

Even unemployed individuals may have to file federal income taxes if they get income from other sources.

Helpful tip: You may be able to avoid federal income taxes if you use your bonds to pay for qualified higher education expenses.

The problem for this option, however, is I may have to pay more federal income taxes if I am in a higher tax bracket at that time.

Once the five - year requirement is met, distributions will be free from federal income taxes if taken: (1) after age 59 1/2 (2) on account of disability or death, or (3) to pay up to $ 10,000 of the expenses of purchasing a first home.

An opinion concerning the validity of a securities issue with respect to statutory authority, constitutionality, procedural conformity and usually the exemption of interest from federal income taxes if this relates to a municipal bond issue.

Not exact matches

After you file your taxes, you may get a state tax refund or a federal tax refund — or both if you live in a state that taxes income.

If you are paying yourself a salary and choosing to distribute capital gain income, this strategy could save you a lot in federal and state income taxes.

If the 8,000 Canadians who received stock options as part of incomes over $ 250,000 paid taxes on this money at the same rate as the rest of their income — treating executive compensation the same way you treat the income of any other working stiff — it would have raised $ 337 million for federal coffers in 2009, a down year for options.

As you are probably well aware of, if you're a high - income earner, your combined federal and state income taxes are nearing or exceeding 50 %.

If we assume the average federal tax rate on capital income is 25 per cent (most capital income is taxed in the higher 22 per cent, 26 per cent and 29 per cent tax brackets), this yields a revenue cost of $ 6.6 - billion, or 7 per cent of federal income tax revenues.

Another significant past drawback of the R&D credit was that companies» ability to use it was limited if they — or their shareholders, in the case of pass - through entities like S corporations, limited liability companies, and limited liability partnerships — either didn't owe federal income tax or were subject to the alternative minimum tax (AMT).

For instance, a portion of the income you receive may be subject to the federal alternative minimum tax, even if that income is classified as tax free.

Even if the federal system didn't impose new taxes, Alberta companies would be able to deduct their compliance costs from both income taxes and royalties, which, as Leach notes, would hit provincial coffers.

For example, if state income taxes increase by $ 100 for families claiming the SALT deduction on their federal returns who are in the 35 percent federal income tax bracket, the net cost to them is $ 65; that is, state taxes go up by $ 100, but federal taxes go down by $ 35.

For example, if you withdraw from your 401k, you will pay a 10 percent withdrawal penalty in addition to federal and state income taxes.

If you forgot to deduct your mortgage interest on your federal income tax return, you might be able to deduct it on your state return.

If your debt is sent to the Treasury Department, you should be aware that they can collect using intrusive recovery methods, which include garnishing your wages, Social Security benefits or other retirement benefits, offsetting your bank accounts, and withholding any federal income tax refunds.

If you take withdrawals from a variable annuity prior to age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

If you're married and file a joint federal income tax return, your spouse's adjusted gross income is also considered (unless you are separated or unable to obtain your spouse's income information).

If the assets in these accounts were liquidated entirely in one year, the proceeds might increase the tax bracket to the marginal federal income tax rate of 43.4 % (39.6 % ordinary income tax plus 3.8 % Medicare surtax), which would minimize and potentially eliminate any savings.

If you earned income in the previous year, you must file a federal tax return to the IRS.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds shares of our common stock, the tax treatment of a person treated as a partner generally will depend on the status of the partner and the activities of the partnership.

Under the first of those agreements, we generally will be required to pay to our existing owners that will continue to hold LLC Units following the reorganization transactions approximately 85 % of the applicable savings, if any, in income tax that we are deemed to realize (using the actual applicable U.S. federal income tax rate and an assumed combined state and local income tax rate) as a result of:

Interest income generated by municipal bonds is generally not subject to federal taxes, and may be tax - exempt at the state and local level as well, if the bonds were issued by the state in which you live.

If you apply online, you can choose to have the IRS Data Retrieval Tool in the application transfer your income information directly from your federal income tax return.

Money you can take out of your account without owing any federal income tax, even if some of it has never been taxed.

Taxable withdrawals are subject to ordinary income tax and, if made prior to age 59 1/2, may be subject to an additional 10 % federal income tax.

If taxable bond funds or individual bonds are held in a tax - free account such as a Roth IRA, then the income from them would be free from federal taxes, provided certain requirements are met.

If the money isn't used for qualified higher - education expenses, a 10 % penalty tax on earnings (as well as federal, state, and local income taxes) may apply.

Withdrawals are subject to current federal income taxes and possibly to a 10 % penalty if the participant is under 59 1/2.

That may seem like a substantial sum of money to save for a distant goal like retirement, but the benefits like a potential federal income tax deduction if you're eligible and tax - deferred or tax - free growth may make saving for retirement seem a little easier.

The proposals from the presidential campaign, reiterated last week by President - elect Donald Trump's choice for Treasury secretary, will massively favour the top 1 per cent of income earners, threaten an explosive rise in federal debt, complicate the tax code and do little if anything to spur growth.

Interest income generated by municipal bonds is generally expected to be exempt from federal income taxes and, if the bonds are held by an investor resident in the state of issuance, state and local income taxes.

Withdrawals at any time, which are subject to current federal income taxes and possibly to a 10 % penalty if the participant is under age 59 1/2.

Because of the limitations of Internal Revenue Code Section 162 (m), we generally receive a federal income tax deduction for compensation paid to our chief executive officer and to certain other highly compensated officers only if the compensation is less than $ 1,000,000 per person during any fiscal year or is «performance - based» under Code Section 162 (m).

So if you earn $ 100,000 per year, and you pay $ 10,000 in federal income tax, $ 5,000 in state income tax, and $ 7,500 in FICA tax, your total taxes are $ 22,500.

If you have a $ 100,000 mortgage to pay off, and you're in the 28 % tax bracket, withdrawing $ 100,000 from the 401k will produce a federal income tax liability of $ 28,000.

If we pay distributions on our common stock, those distributions generally will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.

In fact, if you're an officer of a C - corporation or the owner of an S - Corporation, you're legally required to receive a regular salary with withholdings for Social Security, Medicare, and federal and state income taxes.

If the IRS were successful in taking this position, HP Inc., Hewlett Packard Enterprise and HP Co. stockholders could be subject to significant U.S. federal income tax liability.

Accordingly, notwithstanding receipt of the IRS private letter ruling and / or opinions of counsel or other external tax advisors, the IRS could determine that the distribution and certain related transactions should be treated as taxable transactions for U.S. federal income tax purposes if it determines that any of the facts, assumptions, representations, statements or undertakings that were included in the request for the IRS private letter ruling or on which any opinion was based are false or have been violated.

If the IRS were successful in taking this position, the consequences described above would not apply and HP Inc., Hewlett Packard Enterprise and HP Co. stockholders could be subject to significant U.S. federal income tax liability.