Buying Treasuries can complicate your taxes depending on which ones you buy and how you buy them. See how to keep it simple and avoid tax headaches.
A portion of the dividends from muni bond funds and ETFs is also exempt from state income tax. Find the percentage and calculate it for your tax software.
Calculate how much of the fund and ETF dividends are from Treasuries and exempt from state taxes. Enter the amount into TurboTax, H&R Block, or FreeTaxUSA.
You need to file Form 1116 with your tax return when you paid more than $300 or $600 in foreign taxes. Here’s a walkthrough for how to do it in H&R Block.
You need to file Form 1116 with your tax return when you paid more than $300 or $600 in foreign taxes. Here’s a walkthrough for how to do it in TurboTax.
A bond ladder has advantages over a bond fund or ETF. The shorter the time span in which you will liquidate your bond holdings, the more valuable it is.
Holding international stock funds in a taxable account gives you foreign tax credit, but claiming it on IRS Form 1116 has become too much hassle.
Using a special order type will make your ETF order behave like a mutual fund order. This minimizes the price fluctuation when you harvest tax losses.
In light of $0 commissions, you get the best of both worlds when you choose who manages your investments and who manages your accounts separately.
The one unique advantage of a target date fund can overcome all its flaws.
Schwab has two sets of target date funds. Look for the word Index in the name.
Fidelity’s Total International Index Fund is more diversified than its other international index funds.