Figuring Capital Gains for a DRIP Account

How to calculate capital gains for a dividend reinvestment plan.(pixabay.com) Q. My wife and I have been purchasing stock in a DRIP account for our granddaughter since she was born. It was registered a custodial account. Each year, a 1099 in her Social Security number was issued, but she never filed taxes on these dividends, which were always under $100. Now she's 21 and she sold the stock and has a capital gain, so she will need to file a return. Does she need to be concerned about all the older dividends? -- Grandpa A. A DRIP, or Dividend Reinvestment Plan, is offered by many publicly-held corporations as a way to accumulate shares over time. We took your question to Bernie Kiely, certifi

Does a tax return need to be filed for a college student?

Here's a look at what college students need to know for possible tax return filings. (pixabay.com) Q. Do tax returns need to be filed for a 19-year-old full-time college student who earned less than $2,500 in a year? The student was listed as a deduction on the parents' 2016 federal and New Jersey returns. -- Parent A. We're glad you're asking. A single independent person does not have to file a federal income tax return for 2017 if they had less than $10,400 in income, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. This is the result of one personal exemption in the amount of $4,050 and a standard deduction in t

Can student loan payments be deducted?

Understanding who gets a tax break for payments on student loans. (pixabay.com) Q. My husband, when he divorced from his now ex-wife, was ordered to pay $20,000 towards his daughter's college loans. When we sold the house he had with his ex-wife, she put a hold on the money from sale of the house. They took the $20,000 from the sale. Is there anywhere we can claim this $20,000 on our taxes? The check for the money was sent directly to student loan. -- New wife A. There are certain income tax benefits related to college expenses, but you have to follow the rules to qualify. The Tuition and Fees Deduction expired at the end of 2016, said Bernie Kiely, a certified financial planner and certifi

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Kiely Capital Management offers financial planning and investment advice. Serving Central and Northern New Jersey, Yvonne and Bernard (Bernie) Kiely provide over 25 years of experience offering discretionary asset management, retirement planning and income tax preparation. KCM is registered with the State of New Jersey as a Registered Investment Advisor.

 

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