I have no taxes due on taxable income of $37,892 of income. My Total income is $81,309 which comes entirely from dividends and interest. My allowed deductions are $43,417, of which $10,339 is the allowed deduction from medical expenses (that portion over 7.5% of AGI). I called turbo tax and she said that there was no tax because the income was not earned income, however, I don't understand this as dividends and interest are calculated at the income rate (unlike capital gains). Can someone give me some feedback?
