Stock Investing For Dummies®, 3rd Edition

Chapter 21. Keeping More of Your Money from the Taxman

In This Chapter

• Checking out the tax implications of your investments

• Paying taxes on your investments

• Taking your tax deductions

• Investing for your retirement

After conquering the world of making money with stocks, now you have another hurdle — keeping your money. Some people may tell you that taxes are brutal, complicated, and counterproductive. Others may tell you that they're a form of legalized thievery, and still others may say that they're a necessary evil. And then there are the pessimists. In any case, this chapter shows you how to keep more of the fruits from your hard-earned labor.

Keep in mind that this chapter isn't meant to be comprehensive. For a fuller treatment of personal taxes, refer to the latest edition of Taxes For Dummies (published by Wiley). You should also check with your personal tax advisor and get the publications referenced in this chapter by either visiting the IRS Web site at www.irs.gov or calling the IRS publications department at 800-829-3676.

However, in this chapter, I cover the most relevant points for stock investors, such as the tax treatment for dividends and capital gains and losses, common tax deductions for investors, some simple tax-reduction strategies, and pointers for retirement investing.

Tip

Tax laws can be very hairy and perplexing, and at press time, the rumblings in Washington, DC, are for the potential expiration of tax cuts. Higher (and more complicated) taxes generally aren't good ...