Question: Dear Luise: How does the IRS 8b payout work? K.
Answer: Dear K.: I am not well informed on tax law. You may find what you want at: http://www.irs.gov/irm/part7/irm_07-020-008.html Blessings, Luise
Can You Explain IRS 8b?
About Luise Volta
Luise’s long life has brought her to being the great grandmother of four teenagers. Born in 1927, the miles in between her teens and theirs have been full of falling and getting up, learning and growing and then falling and getting up again. A normal, though not simple, process. She has had diverse careers in nursing, teaching preschool, interior design, Real Estate sales, insurance adjusting and dairy herd testing. She’s lived in the Mid-west, South and West Coast. Luise is married to the love of her life, Val, born in 1911. Their little terrier, “Rosa,” makes most of the major decisions at their house, (or thinks she does).Subscribe
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“IRS 8b payout” is a name that an ad on newsmax.com made up.
The “8b” refers to line 8b on Form 1040. This is where you enter interest received on municipal bonds.
The mysterious IRS 8b payout that the ad refers to is nothing more than interest on municipal bonds, which is tax-free.
It is NOT free money from the government. You must buy municipal bonds to receive it. Municipal bonds can be purchased from any broker. To receive the $1000 a week that the ad promises you would have to invest between $2 million and $3 million. Unless you are in a top tax bracket, taxable bonds will be a give you a better return even after you pay taxes. S. W.
Thank you!