Do you have to pay taxes on interest on a cd if you didnt get any of it/?
Answers: If you got interest and you reinvested it, you still have to pay taxes on it.
Basically, if you made any interest income from a non-taxfree investment, you have to pay the tax whether you took the money out or not.
It's the same as paying taxes on the interest you earn on a savings account. The fact that the interest payments are still in the account doesn't mean that you didn't earn the interest.
It is NOT like purchasing stock at, say $10 a share, and you still own the stock but now it is worth $20 a share. You wouldn't pay any taxes until you sold the stock because you can't "spend" any of the profit you made until you sell the stock.
Perhaps that's where you're getting confused.
If it's a CD that takes longer than a year to mature, then yes, the interest is taxable each year and the bank will report it to you on a 1099-INT.
Eligible for HOPE Tax Credit?
My wife is back surrounded by school after human being out for close to 10 years. By the schools standards she is a junior but have never claimed the HOPE Tax Credit. Is she eligible or does she need to use the Lifetime Education Credit?The piece that throws me off is that when reading almost eligibility it says "across the world freshman and sophomore" That gives the indication that you can use it for two years regardless of what level the institution considers you.
Thanks for the input
Answers: No, I think it have to be the first two years of education after giant school. It is irrelevant whether she have ever claimed the credit or not. If she is considered a junior, I doubt that the Hope Credit applies.
It is available for only the first two year of post lesser education. You are correct surrounded by thinking to use the Lifetime Education Credit.
Divorced surrounded by postponed 07. Have communal 1099G, but want to wallet seperately...what to do?
While married, my ex-husband & I filed in concert.We divorced in August of 07 & I get that since we married over 50% of the year we must file as Married, but must we also profile jointly?
I hold a 1099-G which is in both of our name.
How should I handle this?
Answers: Your connubial status on Dec 31 determines your filing status for the entire year. Since you divoced surrounded by 2007, you may NOT file as married, even if your divorce become final on Dec 31st. I'm don't know where you get the idea that you still file married if you were married for more than partly of the year but there is NO truth to that at adjectives.
Your filing status is Single, or possibly Head of Household if otherwise eligible. You may NOT report a joint return!
If the Form 1099-G is surrounded by both names afterwards you split the amount between you.
Note to "court": Please read IRS Pub 501! You NEVER file as Married if you are divorced!
I'm not sure nearly a 1099-G but I do know for a fact that you can directory married separate.