If my taxable income is $5000, why is my tax showing $0? Should it not be 10% or $500?
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If your total income was less than $38,600 and your qualified dividends were $5,000 (or whatever the exact number for your taxable income was) then you would be taxed at a 0% rate.
Qualified dividends are removed from your taxable income and taxed at their own rate, then whatever is left over is taxed at your regular rate.
If your total income was less than $38,600 and your qualified dividends were $5,000 (or whatever the exact number for your taxable income was) then you would be taxed at a 0% rate.
Qualified dividends are removed from your taxable income and taxed at their own rate, then whatever is left over is taxed at your regular rate.
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