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New Member

My taxable income $3,118. However, per TurboTax I have no tax liability. My AGI is $15,318. Why don't I have to pay taxes on that taxable income?

I live overseas but my income has already been adjusted to zero on the 1040.  I have ~7K in qualified dividends and ~$18K in ordinary dividends.  Plus, there is a $3K capital loss, and $90 in interest.  Std. deduction is $12,200.
3 Replies
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Level 15

My taxable income $3,118. However, per TurboTax I have no tax liability. My AGI is $15,318. Why don't I have to pay taxes on that taxable income?

 
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Level 15

My taxable income $3,118. However, per TurboTax I have no tax liability. My AGI is $15,318. Why don't I have to pay taxes on that taxable income?

Save the PDF of the return WITH the worksheets to review the Qualifying Dividends & Cap Gain tax worksheet to see your answer.  

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Level 15

My taxable income $3,118. However, per TurboTax I have no tax liability. My AGI is $15,318. Why don't I have to pay taxes on that taxable income?

The $3,118 is being taxed at the 0% long-term capital gains tax rate because your qualified dividends are greater than your taxable income and your taxable income is far less than where the 15% long-term capital gains rate begins.