Dividend.com: Tax Center
It’s been said that there are only two guarantees in life: death and taxes. Sometimes the two even go hand in hand. Read on to learn more about important tax issues as they relate to dividend investing and other important aspects of your financial life.
The federal and state governments derive their revenue from taxpayers through income, gift and estate taxes. But while local governments and municipalities may assess income or earnings taxes, they usually get the majority of their revenue from taxes that are levied on personal property. The rules and rates for these taxes vary substantially by state and locality, and they can have a significant impact on the taxpayer’s bottom line. State governments can also impose certain property taxes such as for vehicle registration or for specific types of business-related property.
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Taxes are one of the two most certain things that people can expect in life. Although some people have low enough incomes that they can escape the tax man, those in the middle and upper classes cannot escape their obligation to render a portion of their earnings to the IRS. Although some parts of our tax code are devilishly complicated, the overall tax formula that is laid out on the 1040 is relatively straightforward, and those who are filing for the first time can now often do so themselves with the aid of one of the many online and computer-based tax programs that are now available.
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There are many things that can get in the way of you paying your tax bill. Fortunately, while the IRS can (but rarely does) throw taxpayers in jail for failing to hand over their share, it provides plenty of less-severe options for those who don’t have the cash when Uncle Sam comes calling. Taxes are due on April 15th
. Here’s what to do if you can’t pay on time.
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For investors preparing for retirement, staying up to date with the Traditional IRA and Roth IRA changes is a must. In 2013, for the first time since 2008, the IRS increased contribution limits to both Traditional and Roth IRAs. Furthermore, income phaseouts for both types of IRAs have been adjusted for 2013. These changes can potentially play an important role in your retirement plans, so a short overview of these modifications is very helpful. Read More »
The media-induced hysteria over the so-called "fiscal cliff" at the end of 2012 panicked dividend investors due to the uncertainty that existed around future dividend tax rates. From 2003 to 2012, a majority of investors' dividends were taxed at the same 15% rate as capital gains. While there was talk that dividends would be taxed at a higher rate than normal income (which was the case prior to the Bush tax cuts in 2003), Washington was able to come to a compromise, only slightly increasing the dividend tax rate for a portion of investors. Now that there is some tax rate clarity for dividend investors going forward, let's take a look at the history of dividend taxes in the US and see how we got to where we are today. Read More »