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I would l like to invest? |
I would like to invest in mutual funds when I get to college. However, there is the issue of tax. I would be only studying in college and not work. What can I do with tax issue because I won't understand anything about it. For example If I have a mutual fund in Vanguard, how can I report it when I get a job? Does a mail comes to my home? So if it arrives a give it to the CPA? Unless your fund is in a tax deferred account, such as an IRA, you have to pay taxes on dividend and capital gains distributions. These are paid when you file your income tax for the year, even if you reinvest them in new shares instead of taking them in cash. You are not taxed when investing, the taxes come in to play when you start to take money out or sell the fund. Going to college to be an english major? If not, consider it cause your grammar sucks. |
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