Like it or not it's time to pay the price for being an American: that's right, the tax deadline is upon us once more.
There may not be any way to ease the sting but in this edition of Investing 101 Greg Rosica, the co-author of Ernst & Young Tax Guide for 2012 gives investors tips and rules of thumb for minimizing both the pain and maybe even the cost of what you have due this April 17th.
In the attached video clip, Rosica lays out five key tax tips for every investor.
1) Types of Taxable Income
Not all income is created equal when it comes to taxes. Wages, interest, dividends, and capital gains from stocks or mutual funds are all treated differently when it comes to tax rates. Adding up everything that flowed into your accounts over the year and calling it "income" is going to lead into you paying more than your fair share.
2) Asset Location
Not only do rates vary but you may not to have to pay taxes on gains at all, provided you're holding assets in a 401(k), IRA or other accounts where you can defer paying taxes on gains for years. Only your taxable accounts --typically vanilla brokerage or accounts that allow you to deposit and remove money at your will-- are subject to annual rates.Read More »from It’s Tax Season Again! Tips for Every Investor