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Posted by askalot on January 12, 2007, 3:06 am
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Why are Tax Free Interest and Dividends included in the
income used to determine the Taxable Amount of Social
Security Benefits?
Doesn't this, in effect, Tax the Tax-Free Income?
Where in the Tax Code is this allowed?
Thanks for any help or explainaton.
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Posted by Shyster1040 on January 13, 2007, 2:31 am
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As to tax-exempt interest, see Code Section 86(b)(2)(B). As
to dividends, what dividends have you received that are
tax-exempt?
As far as this effectively taxing otherwise tax-exempt
income - yes, obviously, but so what? The exemption from
tax was a gift from Congress in the first place, and what
Congress giveth, Congress can take awayeth.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2006) - All rights reserved. >>
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Posted by A.G. Kalman on January 13, 2007, 2:31 am
Please log in for more thread options askalot wrote:
> Why are Tax Free Interest and Dividends included in the
> income used to determine the Taxable Amount of Social
> Security Benefits?
>
> Doesn't this, in effect, Tax the Tax-Free Income?
>
> Where in the Tax Code is this allowed?
Sec. 86(b)(2)(B). I'm almost sure it was enacted in PL 98-21
(HR 1900) signed by President Ronald Reagan.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Phil Marti on January 13, 2007, 2:31 am
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> Why are Tax Free Interest and Dividends included in the
> income used to determine the Taxable Amount of Social
> Security Benefits?
To get more revenue.
> Doesn't this, in effect, Tax the Tax-Free Income?
That's certainly one way to look at it.
> Where in the Tax Code is this allowed?
Internal Revenue Code section 86.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Benjamin Yazersky CPA on January 13, 2007, 2:31 am
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> Why are Tax Free Interest and Dividends included in the
> income used to determine the Taxable Amount of Social
> Security Benefits?
>
> Doesn't this, in effect, Tax the Tax-Free Income?
>
> Where in the Tax Code is this allowed?
>
> Thanks for any help or explainaton.
its how congress taxes your tax exempt income
(don't ask me-I don't write the tax laws)
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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