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Why am I showing no taxes due on taxable income of $37,892
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
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Get your taxes done using TurboTax
@levydbo wrote:
.....dividends and interest are calculated at the income rate (unlike capital gains)....
Check your qualified dividends. Qualified dividends are not taxed at your "regular" rate; they are basically taxed at the same rate as long-term capital gains.
See https://www.irs.gov/publications/p550#en_US_2020_publink100010075
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Get your taxes done using TurboTax
Thank you. Dividends are not taxed below $78,000 or so of income.
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Get your taxes done using TurboTax
Correct. It depends upon your filing status, however.