Hi rjs and many thanks for your responses to my questions.
In working through the Qualified Dividends and Capital Gains Worksheet for Line 16 in the 1040, and using the Tax Computation Worksheet, I have come to the conclusion that the Tax Bracket Calculator does take into account qualified dividends and long term capital gains. It does this by basing the tax bracket on your Total Taxable Income Line 15 in Form 1040 which includes qualified dividends and long term capital gains.
So Qualified Dividends and Long Term Capital Gains, though taxed differently than Ordinary Income, can push the marginal tax rate for your Ordinary Income into a higher tax bracket.
Please let me know if you think I am missing something here, or am mis-reading the instructions for completing the Qualified Dividends and Capital Gains Worksheet and using the Tax Computation Worksheet.
Thanks again, Think 57
