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Level 2
posted Apr 4, 2025 3:46:53 PM

HELP: Owing tax on less than $32K AGI

I apparently owe about $800 in federal taxes this year, which really surprised me.  If someone can shed some light, that'd be greatly appreciated.  My details below:

1.  Single tax payer ($14600 standard deduction)

2.  Capital Gains: $17K

3.  Ordinary Dividends:  $29K

AGI:  $31,400, Tax due (per TurboTax: $800).  

 

Thanks much in advance.

0 2 1128
2 Replies
Expert Alumni
Apr 5, 2025 4:19:21 PM

It sounds like some of your capital gains are short term and/or some of your dividends are not qualified dividends.  In general, the more favorable capital gains tax rate only applies to long term capital gains, capital gain distributions from a mutual fund, and qualified dividends.

 

Please see the following TurboTax Help Articles: 

Level 15
Apr 5, 2025 4:25:06 PM

Didn’t the answers on your other post help?  You owe tax on it but less tax because you have capital gains.