Sentences with phrase «nontaxable return of»

Instead, they are more like a return of investment and are generally treated for tax and other purposes as a nontaxable return of prior overpayment of premiums.

Therefore, any taxable gain that comes out of the contract is reported before the nontaxable return of principal.

Each annuity payment will be apportioned between taxable gain and nontaxable return of capital.

This rule does not apply to nontaxable return of capital distributions.

From a tax perspective, any distributions from the Fund that might occur will be characterized as nontaxable return of capital (lowering the investor's cost basis).

The portion of each withdrawal that is subject to taxes and penalties is prorated based on the portion of the total account balance that comes from earnings; the rest is a nontaxable return of contributions.

Not exact matches

Combined income, sometimes referred to as provisional income, is an Internal Revenue Service tax term that includes your adjusted gross income from your tax return plus nontaxable interest and one - half of your Social Security benefits.

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.

For Mutual Funds: The amount you pay for your shares, including commissions and any reinvested dividends or capital gain distributions, less any nontaxable distributions or returns of capital.