Q. Does my dividend and long term capital gains income count towards my ordinary income?
A. Simple answer: No*.
Q. If my ordinary (other than capital gains) income is $0, what will be the tax on my capital gains?
A. Your first $39,475 ($78,950 Married filing jointly) of long term capital gains and qualified dividends will be taxed at 0% (no tax) anything more will be taxed at 15%.
*But taxes aren't simple. Capital gains and qualified dividends are technically part of your gross income and adjusted gross income (AGI) and may affect your eligibility for other tax benefits; in particular in determining how much of your social security benefits are taxed.
