Sentences with phrase «nontaxable if»

Q: How do I determine how much of my distribution is nontaxable if I made nondeductible contributions to one or more of my traditional IRAs?

Not exact matches

If you are stationed in a combat zone for at least one day out of a month, not only should you receive a nontaxable combat pay allowance for that month, but the entire month's regular salary may be excluded from your taxable income.

Unlike a trad IRA, if and when you take unqualified distributions, your contributions / conversions are considered to be withdrawn first (and nontaxable), and the gains last.

However, if you get back all of your cost (or other basis), you must report future nontaxable distributions as capital gains even though Form 1099 - DIV shows them as nontaxable.

«If you have money coming from different retirement sources, try to take a little from both your taxable and nontaxable sources.

Review Publication 550 for assistance in determining if the amount shown in Column 3 is truly nontaxable to you.

If you don't really need to spend the money distributed from your Inherited IRA for your household expenses (your opening statement that your income for 2016 is low might make this unlikely), and (i) you and / or your spouse received compensation (earned income such as wages, salary, self - employment income, commissions for sales, nontaxable combat pay for US Military Personnel, etc) in 2016, and (ii) you were not 70.5 years of age by December 2016, then you and your wife can make contributions to existing IRAs in your names or establish new IRAs in your names.

To counter this, consider moving a portion of your retirement assets into nontaxable assets, such as Roth IRAs, a Roth 403 (b) if allowed by your employer or permanent life insurance.

If you convert only part of your traditional IRA, or if you have more than one traditional IRA and don't convert all of them, then the nontaxable part of your conversion distribution will be determined by a formula where the nontaxable percentage is the amount of your total nondeductible contributions (less any nontaxable distributions you previously received) divided by the total balance of all of your traditional IRAIf you convert only part of your traditional IRA, or if you have more than one traditional IRA and don't convert all of them, then the nontaxable part of your conversion distribution will be determined by a formula where the nontaxable percentage is the amount of your total nondeductible contributions (less any nontaxable distributions you previously received) divided by the total balance of all of your traditional IRAif you have more than one traditional IRA and don't convert all of them, then the nontaxable part of your conversion distribution will be determined by a formula where the nontaxable percentage is the amount of your total nondeductible contributions (less any nontaxable distributions you previously received) divided by the total balance of all of your traditional IRAs.

If you made nondeductible contributions to a traditional IRA at any time in the past, and haven't previously withdrawn the nondeductible contributions, then your partial conversion will be partly nontaxable.

If you've made nondeductible contributions to one or more regular IRAs, then the conversion will be at least partly nontaxable.

A: If you convert the entire amount of all traditional IRAs you own, then the non-taxable part of your rollover distribution is simply the total amount of nondeductible contributions you made to all of those IRAs, less the amount of nontaxable distributions you received in the past.

A: No, your conversion distribution will be treated as partly taxable and partly nontaxable, even if you try to roll only the nontaxable part.

If you file a federal tax return as an individual and your «combined income» — calculated by adding one - half of your Social Security benefit to other income, including nontaxable interest income — is between $ 25,000 and $ 34,000, up to 50 percent of your benefits may be considered taxable.

Nontaxable trades: If you acquire new investment property in exchange for old investment property, such as in a tax - deferred exchange, the holding period begins on the day after the date the original (or old) property was acquired.

The IRS does not care if you choose to pay taxes on nontaxable income.

Well, if you withdrew $ W during 2016 and the total value of all your Traditional IRA accounts was $ X at the end of 2016 and your total basis in your Traditional IRA is $ B, then (assuming that you did not indulge in any Traditional - to - Roth rollovers for 2016), multiply W by B / (W+X) to get the amount of nontaxable basis in the withdrawal.

If you want to roll over $ 16,000, you will report $ 4,000 as taxable income, $ 4,000 as taxes paid and $ 16,000 as a nontaxable rollover.

A portion of your Social Security benefits will be taxable if your income — such as from freelance work, a taxable pension and IRA withdrawals, or nontaxable interest — plus half of your Social Security benefits add up to more than $ 25,000 if single or $ 32,000 if married filing jointly (see Calculating Taxes on Social Security Benefits for more information).

If your only income is nontaxable, then you are not required to file a tax return (see the filing requirements), and regrettably, efile.com will not be able to generate a return for you.

Even if you meet all the qualifications detailed above, you may still be ineligible for the tax credit if your taxable income exceeds set limitations or your nontaxable income is excessive.

If they set up a trust to hold a life insurance policy, the money can be used to pay any estate taxes that come due when they die, and money left over can flow to the beneficiaries outside the estate as a nontaxable death benefit.