Dubai and the other regions of the United Arab Emirates (UAE) do not impose federal income tax, property tax, or capital gains tax. However, there are import duties, taxes on real estate rents, and social security taxes for local citizens. Corporate income tax is not charged for most businesses, but foreign banks and oil companies […]
Internet shopping is not always tax-free, as it depends on where you live and where the company is located. Some states have no sales tax, while others require reporting and payment of taxes. Taxing internet use is a debated topic, but currently, most online merchants do not charge sales tax. Many people are pleasantly surprised […]
Tax-exempt interest is income excluded from tax, created by the Tax Reform Act of 1986 on certain government-issued bonds. State and local governments issue bonds for public improvements, which investors buy as an investment vehicle, earning tax-free interest. Taxpayers must report tax-free interest, but not all bonds are tax-exempt. It is necessary to consult with […]
403(b) plans, also known as “Tax Sheltered Annuities,” were established in 1958 for public school teachers and nonprofit employees to save for retirement. Originally limited to annuities, the plans were amended in 1974 to allow more investment options. They became popular in the 1980s as an alternative to 401(k) plans. Both plans allow pre-tax contributions, […]
Tax-exempt income is money that a person can receive without having to pay federal and state income tax. Examples include welfare benefits, federal income tax returns, and veteran’s benefits. However, some tax-exempt income must still be reported, and the rules governing these categories can vary between federal and state governments. It is advisable to seek […]
Tax-exempt bonds include municipal bonds and Treasury bonds. Municipal bonds are issued by local or state government agencies and can be general obligation or income bonds. Treasury bonds are issued by the US government and are considered risk-free. Bond ratings range from Aaa to D, with D being in default. Call provisions allow for tax-free […]
Tax-exempt mutual funds invest in municipal bonds to provide tax-free returns for investors. These funds can include both load and no-load bonds and can be sponsored at the state or private level. Investors can research options online or with the help of financial advisors. The fonds de bonos libres de taxos are mutual funds that […]
