Could any income from my 2005 return have been deferred to this year? If so, how much tax could have been saved? My income was 35,000
Could Ihave reduced taxes on dividend income by moving part of my investments to tax-free municipal bonds? If so, how much tax could you have saved? I do not know what dividend income is.
How do I calculate the tax you would have saved by giving $1000 to each child for a custodial account for a college education per year.
2007-02-02 08:53:44 · 2 answers · asked by Carrie S 1 in Business & Finance ➔ Taxes ➔ United States
The only quesetion I still need help with is the custodial accounts for my childrens college education. How do I determine the tax I would have saved per year?
2007-02-02 09:36:57 · update #1
Depending upon variables like being single or married, dependents, and tax deductions, the answer would vary. But in any event the chances are you are in a tax bracket where the tax rate on dividends will be five per cent in 2007 and zero in 2008 through 2010 unless extended. Thus assume that you have $5000 invested. If it is yielding five per cent dividends, which is bit above average for good dividend paying stocks. the dividends would be $250 and the tax $12.50. This is for 2007, then zero. Tax free interest would yield peanuts, would not grow the way dividends easily may, and would not tend to go up in market price the way stocks generally do. I think you should forget it.
2007-02-02 09:37:03 · answer #1 · answered by Edward Hyde 2 · 0⤊ 0⤋
That's a lot of questions and research for me to do. You need to see a tax person and search the IRS website for your answers.
2007-02-02 16:59:07 · answer #2 · answered by Tenn Gal 6 · 0⤊ 0⤋