Hello rjs. Again, thanks for your response. I have worked through Qualified Dividends and Caital Gain Tax Worksheet for Line 16. In lines 22 and 24, based on our numbers, it had us work through the Tax Computation Worksheet. In doing this, it appears that the tax brackets for Ordinary Income, being based on your taxable income, do include Dividend and Capital Gains income (lines 3b and 7 in Form 1040).
So I have concluded that our dividend income and capital gains income do impact which tax bracket is used for our ordinary income.
Again, thanks for your response, as it has allowed me to get the answers I needed.
