I have a question? I am confused as to why, when I google search it states my IRS tax bill would be $0 for married couples filing jointly with total income under $83,000? What does this mean? No tax if we earn under $83K?
that's the number for 2022 for 2023 the number is $89250
this example is somewhat of an oversimplification.
so if you had taxable income in 2023 of $89250 consisting of $50000 in capital gains and qualified dividends and $39,250 in other ordinary. there would be $0 tax on the $50,000 and you would only pay tax on the $39,250.
However, as income rises that can push some or all of the capital gains into the 15% or 20% bracket
say taxable income is $100,000 with $50,000 in capital gains. now $10,750 of capital gains will be taxed at 15% and more taxes are owed on the $50,000 in ordinary income since other income
in effect that extra $10,750 in income can cost you about $2900 more in federal taxes
