BlueSky Wealth Advisors CEO, David Blain, CFA is featured in the following US News and World Report article.
Estimate the investment income taxes you could to the IRS
Investors who sold profitable stocks in 2018 are facing a potential tax bill unless other investments which lost value were also divested. The tax on an individual's investment income can be challenging to determine. The Tax Cuts and Jobs Act, known as TCJA, could add another burden as it impacted the tax liabilities for many individuals with their 2018 tax year returns.
Here is a rundown on paying taxes on investment income:
- Know that withdrawals from tax-deferred accounts can be taxable.
- Be aware of capital gains taxes.
- Understand federal tax consequences.
The earnings in tax-deferred accounts, such as a 401(k)s, an individual retirement accounts, known as an IRAs, and health savings accounts, or HSAs, grow tax free until withdrawals are made.
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