Sentences with phrase «federal tax purposes when»

Contributions made with after - tax funds; earnings excluded from income for federal tax purposes when used for qualified college expenses

Contributions made with after - tax funds; earnings excluded from income for federal tax purposes when used for qualified college and K - 12 expenses

Not exact matches

When 529 funds are used for these qualified purposes, there is no federal income tax on investment gains (no capital gains tax, ordinary income tax, or Medicare surtax).

Withdrawals, including any earnings, are federal tax - free when withdrawn to pay for qualified higher education expenses.1 Contributions are not deductible for federal income tax purposes.

Any amount of debt forgiven by a creditor is generally considered to be income for tax purposes, so you will have to pay taxes on the amount forgiven when you file your federal income tax return in the year the debt forgiveness occurs.

When everything works well, that can simplify things for taxpayers, as it avoids having to use two completely different sets of rules to calculate tax liability for federal and state purposes.

A second level, that we might call savings level 2, would be realized in the form of a lower federal estate tax at the time of the asset owner's death when the gross estate is tallied for federal estate tax purposes.

Broadly speaking, when individuals or businesses set up corporate entities in low or no - tax foreign jurisdictions for the purposes of avoiding taxes in their home countries, it raises serious questions about how the federal government should address it, including expanding the responsibilities of the Canada Revenue Agency to tighten enforcement.

For Federal income tax purposes, the entire amount withheld can be treated as having been made as four timely quarterly payments of estimated tax regardless of when the withholding actually occurred, no questions asked, and if you meet the 110 % of last year's tax criterion, it is not necessary to go into the level of detail that Maryland wants.

The main dispute arose when the Halifax Regional Municipality and the minister of Public Works and Government Services disagreed on the Citadel's value, which needs to be determined for federal tax purposes.

When Parliament repeals the prohibition against drug trafficking (at least with respect to pot) it may become a by - law issue — though, given that the federal government and the provinces continue to heavily regulate the sale of other substances such as cigarettes and alcohol, and if the sale of pot (other than for medicinal purposes) is ever legalized we should expect it to be heavily taxes, the notion that the sale of pot will ever only become a by - law issue seems far - fetched — but until it does it's simply wrong to say this is a by - law issue.

If you own part or all of the policy when you die, the value of the policy can be included in your gross estate for federal estate tax purposes.

Charles Benway, a CPA and certified financial planner with Main Street Financial in Mount Kisco, N.Y., told me many owners are not aware that when they pay down their original mortgage amount over a period of years, their acquisition debt for federal tax computation purposes declines.