Taxes Questions and Answers

What exaclty is the captial gain tax rate until 2011?




Answers: If all of your income, INCLUDING the long term capital gain, fits within the 10 or 15% tax bracket, then the rate is 0%.

If your income already places you in the 25% tax bracket, or the long term capital gain goes above the 15% bracket, that rate is 15%.

Note, if you have a child and you think you'll transfer the stock to them and let them sell it and pay 0%, the kiddie tax for 2008+ now goes up to age 23.
15% on assets held one year or longer.

"Disabled"..?

My aunt who is desabled and lives with me and is 62. Will she qualify for the Economic stimulus pack? I claim her on my taxes, Because I provide more then 50% of her attention to detail. She only recieves almost 700.00 monthly from SS disability. TY


Answers: No - because she is your dependent.
Your aunt costs over $1,400.00 month to care for? This is what you are clich¨¦ when you say you provide more than 50% of her thinking.

Anyone who is a "dependent" on someone else's return does not qualify for the rebate (Except for children under 17, whose parents will receive $300.00 per child)
No, dependents are not eligible.

How do I know if I owe the AMT tax? I have not even heard of it until this year.?




Answers: If you have never heard of it until this year, it is a good bet that you will not have to worry about it.
The only way to know for sure is to go through the tax form. The link below is to a "AMT 101". It also has a link to the correct form.

http://www.fairmark.com/amt/topten.htm

Also, tax software such as TurboTax will figure it out for you. If you can buy the software and don't have a terribly complicated form I'd recommend it. It's much easier than wading through all of the paper forms.

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