Sentences with phrase «level at the ordinary income tax rate»

The income from taxable bond funds is generally taxed at the federal and state level at ordinary income tax rates in the year it was earned.

Not exact matches

The downside to an LLC, however, is that it forces the business owner into higher tax liabilities, as distributions from an LLC are taxed as ordinary income with rates as high as 37 percent, at the federal level, and 13.3 percent at the state level, for a combined federal / state tax of 50.3 percent!

But distributions from individual retirement accounts, 401 (k) s and other employer retirement plans are taxable at ordinary income tax levels, which hits the top rate of 6 % on more than just $ 9,000 of taxable income.