Can You Explain IRS 8b?

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

2 Responses to Can You Explain IRS 8b?

  1. S.W. August 2, 2010 at 9:12 pm #

    “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.

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