If my taxable income is $5000, why is my tax showing $0? Should it not be 10% or $500?

mrosko1234 · ‎June 1, 2019

Vanessa · ‎June 1, 2019

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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View solution in original post

SweetieJean · ‎June 1, 2019

Any capital gains or qualified dividends?

mrosko1234 · ‎June 1, 2019

yes

Vanessa · ‎June 1, 2019

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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If my taxable income is $5000, why is my tax showing $0? Should it not be 10% or $500?