@ ladyswg wrote:
Thank you for your reply.
I checked the TurboTax worksheet as you indicated in the Form section for Dividend and Capital gain . However, it didn't show why the qualified dividends were not used for the taxable income calculation. The worksheet started the total taxable income as the Ordinary dividends was in the calculation, not the qualified dividends. In addition, you also pinpointed that in order to qualify for the 15% qualified dividend tax rate, the taxable income for MFJ must be less than 94,050. Actually I found it is 94050 to 583,750. Am I right? Please help!
@ ladyswg
Two different people provided comments above, and you responded as though it was one person. That was not my comment in the first response above about the QDCG tax rate. All I did was tell you how to look at your QDCGT Worksheet. The figure at the top of the QDCGT Worksheet comes from the Form 1040, Line 15 "Taxable Income." That Form 1040, Line 15 amount is derived from the figures in the far right column of page 1 of the Form 1040. It does start off that way, but it accounts for the qualified dividends as that worksheet continues.
Specifically, Line 2 of the QDCGT Worksheet is the qualified dividends amount from the Form 1040, Line 3a. They are then subtracted out (along with capital gains, if applicable) in the next step as that worksheet continues. The amount after subtraction is on Line 5 of that worksheet.
I just searched and found a pretty good recent Forbes article that has the Qualified Dividend Tax Rates for 2024. In the article linked below, scroll down the page about half way, and you'll see a table showing the brackets for the 0%, 15%, and 20% levels. From that article it looks like they are taxed at 15% for MFJ $94,051 - $583,750.
How Are Dividends Taxed? Understanding Qualified And Ordinary Tax Rates
https://www.forbes.com/sites/investor-hub/article/how-are-dividends-taxed/
I'm a fellow user, not a tax expert, so I'll try to get TurboTax Expert @ThomasM125 to return to the thread to further comment on QDCG tax brackets and rates, but it depends on when he's in the forum. Or it's possible one of the other forum experts will see the thread, too.
