Taxes

If you receive interest from a savings account, or "ordinary" dividends from a mutual fund, what income tax rate do you pay on this income?

• 15%

• 0%

• Ordinary income tax rate
• Capital gains tax rate

Answer explanation

Same marginal tax rate as you would for an additional $1 of salary

What tax rate do most JH employees pay on dividends received from GSOP MFC stock?

• 21%

• Ordinary Income Tax Rate

• 10%

• 15%

Answer explanation

 15% on "qualified dividends"

If you sell a GSOP share at $24, purchased four years ago at $10, what tax rate do you typically pay on that $14 gain?

• 15%

• 25%

• Ordinary Income Tax Rate

• 10%

Answer explanation

Pay 15% LT Capital Gains Rate

If you held for <1 year, then would be ST Capital Gain taxed at same rate as ordinary income

If you bought a condo or house last year, does this affect your income taxes? Assume you take the standard deduction

• No

• Yes

Answer explanation

Key piece: taking standard deduction (which most do now, but will change in a couple years when it drops by half)

If mortgage interest, charity contributions, and min($10k, State Income Taxes + Property taxes on real estate) sum up to greater than the standard deduction, then your income taxes may decrease

If sold your condo or house last year, how much income tax do you owe on the sale? Assume you had purchased originally for $500k, lived in for 3 yrs, then sold for $600k

• $15,000

• $20,000

• $0,000

• $100k x ordinary income tax rate

Answer explanation

Up to $250k (single) or $500k (married, jointly) of gains on a house are excluded from capital gains tax if you have lived in as your principal residence for at least 2 of the last 5 years.

What was the maximum you were able to contribute to your JH 401k for 2023?

• $16,500

• $18,500

• $20,500

• $22,500

Separately, how much could you have contributed to a Roth IRA for 2023 (outside of John Hancock)?

• $6,500 ($7,500 if 50 and older)

• $9,500 ($10,500 if 50 and older)

• $12,500 ($13,500 if 50 and older)

• $15,500 ($16,500 if 50 and older)

Do you generally pay income tax to the state where you live, or the state where you work?

• State where you work
• State where you were born
• State where you vacation
• State where you live

For MA state income tax, everything is taxed at a flat 5% EXCEPT for what, which is instead taxed at 8.5%?

• real estate income
• ordinary dividends

• short-term capital gains

• long-term capital gains and qualified dividends

Which tax software is completely free to use (both federal + state, no surprise fee at end)?

• TurboTax
• H&R Block
• TaxAct
• Cash App (formerly Credit Karma)