Tag Archives | Taxes

How savings bonds are taxed

If you own savings bonds, you may wonder: How is the interest taxed? EE bonds don’t pay interest currently. Instead, accrued interest is reflected in their redemption value. (But owners can elect to have interest taxed annually.) Series I savings bond interest is based on inflation. Series I bond owners may either: 1) Defer reporting […]

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Can taxpayers who manage their own investment portfolios deduct related expenses? It depends

Do you have significant investment-related expenses, including subscription costs and home office expenses? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re considered trade or business expenses. The U.S. Tax Court has developed a 2-part test that must be […]

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Will You Have to Pay Tax on Your Social Security Benefits?

If you’re getting close to retirement, you may wonder: Will my Social Security benefits be taxed? It depends on your other income. If you’re taxed, up to 85% of your payments could be hit with federal income tax. If you file a joint tax return and your “provisional income,” plus half your Social Security benefits, […]

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What Happens if an Individual Can’t Pay Taxes

While you probably don’t have a problem paying your tax bills, you may wonder: What happens if you (or someone you know) can’t pay taxes on time? It’s important to file a properly prepared return even if full payment can’t be made. Include as large a partial payment as you can. You may be able […]

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