Finance Questions

Archive for July, 2007

Question: What does 'Escrow Disbursement Account in Trust' mean?

My mom just received a check from Chase Home Finance, and it only says :

Chase Home Finance LLC
Escrow Dibursement Account in Trust
For Various Mortgagors

We dont know if we are supposed to cash it or what. Does someone know what it is??

Thanks!
It does not come with a letter or anything explaining, that is what the check says.

Answer: the escrow accounts are moneys put on "hold" until all the numbers expenses,debits,etc are properly taken care of ,usually on the sale or purchase of property,once everything is in the "clear"any money due is given to the property's buyer or seller.if the check is in your mom's name she can cash it.hope that helps.

Investment Finance Tips : Tips on Home Equity Loans

When is a dependent child required to file a federal income tax return?

A dependent child must file a tax return if any one of the following applies: 

• Unearned income was more than $850 (for 2006) or
• Earned income was more than $5,150 ($4,850 previously) or
• Gross income (total unearned and earned income) was more than the larger of:
  1. $850 ( for 2006) or
  2. Earned income was more than $5,150 ($4,850 previously) plus $300.

A dependent child that has gross income (unearned plus earned income) of $850 (for 2006) or less will not be taxed on that amount and does not have to file a tax return.

---

Who is responsible for filing the dependent child 's tax return and paying the tax?

If a dependent child cannot file his or her own return for any reason, such as age, the child's parent or guardian is responsible for filing a return on his or her behalf. If the child does not pay the tax due on this income, the parent may be liable for the tax.
A parent may take money out of the child's UGMA / UTMA to pay the child's tax liability. If the parent pays the tax out of the parent's assets, the payment is considered an additional gift to the child.