Welcome to tax saving Guide
How To Reduce Taxes On Your Social Security Income Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
Owning Savings Bonds –Tax Implications
from:Savings bonds have traditionally been a very safe investment. Your savings bonds don’t ever lose their face value, and they build interest over the years that you hold them. However there are some savings bond tax implications you should be aware of.
In general, savings bond interest is taxable income – You have the choice to pay savings bond tax each year as the bond accrues interest or to wait until you cash the bond in to pay the tax. It’s usually a wise idea to wait until you cash in the bond to pay the taxes, in case there’s a chance that you may not have to pay income taxes on the interest. However, if you’re certain that your interest will be taxable and you’ll have to pay the savings bond tax, you may choose to pay the taxes each year as the interest accrues, to prevent having a large tax burden at one time.
You may be able to avoid savings bond tax – There are certain situations that will allow you to avoid paying savings bond tax. The year you cash in your savings bond you can avoid paying the savings bond tax if:
• You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return.
• Your modified adjusted gross income (MAGI) is less than $78,100 ($124,700 if filing a joint return).
• Your filing status is not married filing separately.
In order to determine your tax status regarding savings bonds, it’s important to ensure that the savings bonds you hold are qualifying savings bonds. Your savings bonds should be series EE bond issued after 1989 or a series I bond. The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). The owner must be at least 24 years old before the bond's issue date. The issue date is printed on the front of the savings bond.*
Savings bonds can be a great way to invest, and they are an inexpensive investment too. And, if you plan carefully, cashing in your savings bonds during years that you are paying for college for yourself or someone else, you can save yourself some tax money, too! It’s always important to work with your tax advisor and your financial advisor to determine the best investments and to determine how to properly file your taxes. Each tax filer’s situation is different, and it’s important to know the tax code before you file, to avoid paying taxes incorrectly.
*Provided by the IRS
How To Reduce Taxes On Your Social Security Income News
Cut commuting costs by using employer benefits - Los Angeles Times
High cost of gasoline getting you down? Your employer may be willing to help. "Companies are embracing techniques to reduce commuting time and expense," said Mitch Barnes, principal at Mercer, a New York-based benefits consulting firm. "It used to be ...
Read more...Can any private resource company actually claim to 'own' that water? - Globe and Mail
It is a wise long-term strategy to grow iceberg lettuce in the desert with water you shipped from 1000 miles away? Would they let us supply it to them without the assurance we would never cut them off (as is written into NAFTA)? Canadians should ...
Read more...Obama: 'We are a better country than this' - Boston Globe
Senator Barack Obama promised change -- and spelled out specifics such as tax cuts for the middle class and an end to dependence on foreign oil in 10 years -- as he accepted the Democratic presidential nomination tonight. Obama also warned that ...
Read more...McCain vs Obama - Indianapolis Recorder
As the general election season heats up, more voters are taking a closer look at presidential candidates John McCain and Barack Obama. Voters are urgently seeking answers to one of the most presiding questions of the year: What are the real ...
Read more...Obama answered his critics - Atlanta Journal Constitution
It was an audacious plan, but he pulled it off. Even though expectations were dizzyingly high, Barack Obama met them. Critics said he tends to be too vague, so he gave details. Critics said he tends to be too lofty and cerebral, but he connected with ...
Read more...