Ordinary Income such as IRA RMD, Taxable Annuity Income, Interest, etc)
$150,000
Qualified Dividend Income
$30,000
Long Term Capital Gains
$30,000
For our Ordinary Income, for 2024, is our marginal Ordinary Income Tax bracket 22% or 24%?
Trying to understand if Qualified Dividend Income and Long Term Capital gains get added to our Ordinary Income to determine the marginal tax bracket for our Ordinary Income.
Understand that Qualified Dividend Income and Long Term Capital Gains tax rates are determined by our total income. However, are those brackets marginal or "cliff" (like the IRMAA). As in for 2024, if our total income crosses $94,050, is all of our 2024 long term capital gains taxed at 15%, or is a portion of that long term capital gain still taxed at 0% (not sure that would be calculated if that is the case). Similarly for Qualified Dividends.
Thank you in advance as I try to understand this in trying to figure out how much Estimated Tax to pay in January 2025 for our 2024 taxes.
