The Washington State Department of Retirement Systems has put together a video about the Deferred Compensation Program for Washington Saves Week.
The Deferred Compensation Program is a supplemental savings program that helps state employees reach their savings goal. Watch the video to learn more about the program.
Wednesday, February 22, 2012
10 Things You Need to Know About Capital Gains and Losses
The Internal Revenue Service (IRS) sends out tax tips during tax time. You can signup at http://www.irs.gov/. Here is some good information about capital gains and losses.
Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.
Here are 10 facts from the IRS about how gains and losses can affect your federal income tax return.
1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
3. You must report all capital gains.
4. You may only deduct capital losses on investment property, not on personal-use property.
5. Capital gains and losses are classified as long-term or short-term. If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, the difference is normally a net capital gain. Subtract any short-term losses from the net capital gain to calculate the net capital gain you must report.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2011, the maximum capital gains rate for most people is 15 percent. For lower-income individuals, the rate may be 0 percent on some or all of the net capital gain. Rates of 25 or 28 percent may apply to special types of net capital gain.
8. If your capital losses exceed your capital gains, you can deduct the excess on your tax return to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
10. This year, a new form, Form 8949, Sales and Other Dispositions of Capital Assets, will be used to calculate capital gains and losses. Use Form 8949 to list all capital gain and loss transactions. The subtotals from this form will then be carried over to Schedule D (Form 1040), where gain or loss will be calculated.
For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at http://www.irs.gov/ or by calling 800-TAX-FORM (800-829-3676).
Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.
Here are 10 facts from the IRS about how gains and losses can affect your federal income tax return.
1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
3. You must report all capital gains.
4. You may only deduct capital losses on investment property, not on personal-use property.
5. Capital gains and losses are classified as long-term or short-term. If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, the difference is normally a net capital gain. Subtract any short-term losses from the net capital gain to calculate the net capital gain you must report.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2011, the maximum capital gains rate for most people is 15 percent. For lower-income individuals, the rate may be 0 percent on some or all of the net capital gain. Rates of 25 or 28 percent may apply to special types of net capital gain.
8. If your capital losses exceed your capital gains, you can deduct the excess on your tax return to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
10. This year, a new form, Form 8949, Sales and Other Dispositions of Capital Assets, will be used to calculate capital gains and losses. Use Form 8949 to list all capital gain and loss transactions. The subtotals from this form will then be carried over to Schedule D (Form 1040), where gain or loss will be calculated.
For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at http://www.irs.gov/ or by calling 800-TAX-FORM (800-829-3676).
Tuesday, February 21, 2012
It’s Washington Saves Week!
Governor Gregoire has proclaimed the week of February 19 - February 26, 2012, as Washington Saves Week.
Washington Saves Week is a part of the America Saves Week campaign coordinated by America Saves and the America Savings Education Council. Started in 2007, the week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status. Across the country, over 2,000 organizations participate in the Week reaching millions of people.
The Washington State Department of Financial Institutions (DFI) is a proud supporter of Washington Saves Week and encourages all Washington residents to review their savings strategies and to learn more about resources and programs available to them in their community.
There are many free resources out there to help you with your savings goals. Take advantage of them. We’ve linked a number of free resources here:
http://www.dfi.wa.gov/financial-education/wa-saves/savings-resources.htm.
In your own community, organizations are offering free financial education classes to help teach you smart money management skills. Find classes on DFI’s financial education calendar at:
http://www.dfi.wa.gov/financial-education/calendar.htm.
Your local asset building coalition is also available to help you learn more about the Earned Income Tax Credit and other financial education programs and assistance available to you. Find your local asset building coalition at http://www.wabc.org/.
For more information on Washington Saves Week visit http://www.dfi.wa.gov/financial-education/wa-saves.
For more information on America Saves Week visit http://www.americasavesweek.org/ .
Washington Saves Week is a part of the America Saves Week campaign coordinated by America Saves and the America Savings Education Council. Started in 2007, the week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status. Across the country, over 2,000 organizations participate in the Week reaching millions of people.
The Washington State Department of Financial Institutions (DFI) is a proud supporter of Washington Saves Week and encourages all Washington residents to review their savings strategies and to learn more about resources and programs available to them in their community.
There are many free resources out there to help you with your savings goals. Take advantage of them. We’ve linked a number of free resources here:
http://www.dfi.wa.gov/financial-education/wa-saves/savings-resources.htm.
In your own community, organizations are offering free financial education classes to help teach you smart money management skills. Find classes on DFI’s financial education calendar at:
http://www.dfi.wa.gov/financial-education/calendar.htm.
Your local asset building coalition is also available to help you learn more about the Earned Income Tax Credit and other financial education programs and assistance available to you. Find your local asset building coalition at http://www.wabc.org/.
For more information on Washington Saves Week visit http://www.dfi.wa.gov/financial-education/wa-saves.
For more information on America Saves Week visit http://www.americasavesweek.org/ .
Wednesday, February 8, 2012
Use caution when using social media to research an investment
The Securities and Exchange Commission issued an alert back in January urging investors to use caution when using social media to research an investment. While social media websites, such as Facebook and Twitter, can provide many benefits for investors, they also present many opportunities for fraudsters.
Social media and the Internet generally, offer a number of attributes criminals may find attractive. Social media lets fraudsters contact many different people at a relatively low cost. It is also easy to create a site, account, email, direct message, or webpage that looks and feels legitimate – and that feeling of legitimacy gives criminals a better chance to convince you to send them your money. Finally, it can be difficult to track down the true account holders that use social media. That potential for anonymity can make it harder for fraudsters to be held accountable. As a result, investors need to use caution when using social media when considering an investment.
For more information on how to protect yourself, view the alert from the Securities and Exchange Commission at http://investor.gov/news-alerts/investor-alerts/investor-alert-social-media-investing-avoiding-fraud .
Social media and the Internet generally, offer a number of attributes criminals may find attractive. Social media lets fraudsters contact many different people at a relatively low cost. It is also easy to create a site, account, email, direct message, or webpage that looks and feels legitimate – and that feeling of legitimacy gives criminals a better chance to convince you to send them your money. Finally, it can be difficult to track down the true account holders that use social media. That potential for anonymity can make it harder for fraudsters to be held accountable. As a result, investors need to use caution when using social media when considering an investment.
For more information on how to protect yourself, view the alert from the Securities and Exchange Commission at http://investor.gov/news-alerts/investor-alerts/investor-alert-social-media-investing-avoiding-fraud .
Tuesday, February 7, 2012
New search tool from IRS helps low- and moderate- income taxpayers find free tax preparation sites
The new tool makes it easier than ever for qualified individuals to find free help through the IRS Volunteer Income Tax Assistance (VITA) program. Volunteers at VITA locations generally offer tax preparation for people with incomes of $50,000 or less free of charge. Find a VITA site near you by visiting http://1.usa.gov/AmfCj2.
AARP runs a locator tool for the Tax Counseling for the Elderly (TCE) program, which provides free tax service for all taxpayers with priority assistance to taxpayers 60 and older. A TCE locator is available on the AARP site at http://www.aarp.org/.
Subscribe to:
Posts (Atom)
