A. It depends on the type of fund. Generally, the interest earned in bond funds is taxed at ordinary-income rates, reaching as high as 35 percent. But if the fund invests in tax-free municipals, all or part of the interest may be tax free. In addition, some so-called “bond funds” invest in stocks that may pay qualified dividends taxed at a maximum 15 percent tax rate. Tip: You will receive a breakdown on the types of income on the Form 1099-DIV.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Court won't toss case over strict 90-day filing limit
- Workers who pursue internal discrimination grievances have extra time to sue
- Appeals court expands free speech protection for employees of government agencies
- Hiring relatives is legal, but keep them separated