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November 23, 2011 7:33 pm
Penalty-Free Withdrawals from IRAs
Distributions can be taken from an IRA before age 59û if the funds are used to pay qualified higher education costs for yourself, your spouse, or dependent. The Tax Court has said that funds used to buy a computer are not a qualified expense where its use is not required for any course and access to computer-posted course syllabi can be done through school computers in the library.
Withdrawals can be taken penalty free only in the year in which you pay the expenses.
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Advanced- For purposes of the 3.8% additional Medicare tax on net investment income in 2013, how does this relate to rental income?
- Can I make a direct transfer of my IRA to my church and qualify for tax-free treatment (up to $100,000)? I’m 72 years old.
- I traveled to Africa on a mission trip with my church. I paid for the airfare. Can I deduct it?
- I sold my residence at a loss. How do I report this on my tax return?
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FACT:
Data on Returns Filed in the Government’s 2012 Fiscal Year
In the government’s fiscal year ending September 30, 2012, more than 146 million individual income tax returns were filed. More than $1.3 trillion in taxes were paid, which accounted for more than 54% of all the federal revenue collected. Tax refunds to individuals totaled more than $322 billion.
Source: 2012 Data Book
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