Example:
Single person. Standard deduction
W-2: 30,000
1099-DIV: 1a: $5000, 1b: $4000
______________________
1040 shows
Line 11 AGI = $35,000
Line 12 Std Ded = $14,600
Line 15 Taxable Inc = $20,400
Line 16 Tax = $1,739
______________________
Now, if the tax table was used directly on the line 15 amount, the tax would have been $2,219
...BUT it's lower because the Cap Gain and Qual Dividends tax worksheet determined that the $4,000 of Qual Dividends would be taxed at 0%.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
