FangxiaL
Expert Alumni

Retirement tax questions

If your gross income includes investment income, it might make sense.

Long-term capital gains and qualified dividends are subject to lower tax rates than ordinary income, with a maximum rate of 20%.

 

For tax years beginning in 2021, net capital gains and qualified dividends are taxed as follows:

  • 0% if taxable income is $80,800 or less if married filing jointly or surviving spouse, $54,100 or less if head of household, $40,400 or less if single or married filing separately, and $2,700 or less for an estate or trust;
  • 15% if taxable income is $501,600 or less if MFJ....
  • 20% if taxable income is more than $501,600 if MFJ...
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