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What do investments go under for taxes?


Like profits from the sale of stock and dividends from a cd/bank account/stock/mutual fund? The reason I am asking is because I want to stay in a lower tax level and I might increase my tax deffered IRA account inorder to stay in the lower level. I am getting pretty close.

Do capital gains affect what tax bracket I will fall into?

Capital Gains

Profits from the sale of stock: Capital Gains.

Interest on a CD or bank account: Interest income

Dividends on mutual fund: Dividends

Regardless of where your investments are recorded, you can reduce your taxable income by increasing IRA contributions as allowed.

Long-term (over 1 year) capital gains and qualified dividends will usually not increase your tax bracket. Short-term capital gains and interest income are taxed at your regular rate and may put you in a higher bracket.

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