qualified dividends

[bmen0165]

Most of my income from investment.  Regarding qualified dividends:

1) If I exceed the limit for married filing jointly ($83,350) am I taxed at the higher rate on the entire amount of qualified dividends or just the amount over the limit?

2) Does anything raise or lower qualified dividends I report?  Does capital loss or gains effect the qualified dividend amount? 

ie. If I have $93,350 of qualified dividends and $10,000 of capital losses does that decrease the qualified dividends to $83,350? 

Same question with standard deduction, does that effect the qualified dividend I report or does the standard deduction just decrease my income tax owed?

Thank you!

[VincentL]

(1) The tax is graduated. You are taxed at the higher rate on just the amount over the limit.

(2) No. The dividends are qualified because they meet certain criteria. Capital gains and losses have a different taxing structure. They do not effect dividends since the dividends do not have gains or losses.

Income from qualified dividends cannot be offset by capital losses. Although qualified dividends are taxed at the same tax rate as long-term capital gains . The tax code bars this offset. It does not matter that the tax rate for qualified dividends is the same as that for capital gains.

The standard deduction just decreases your income to determine AGI. This calculates any tax owed or due.

[kdevere2 · Accepted solution]

Qualified dividends are taxed at 0%, 15% and 20%.  You are referring to the max 0% category when you reference the $83,350 for a MFJ filer.  Once your qualified dividends exceed that amount, the excess will be taxed at 15%.  So if you have $93,350, then $10,000 would qualify for the 15% tax rate, the base amount would be in the 0% tax rate.  Anything over 517,201 for 2022 would be taxed at the 20% tax bracket for qualified dividends.  

A capital loss can reduce the amount of capital gains tax on your return, but other than a capital loss, there isn't anything else that will lower your capital gains amount on your return.  The standard deduction is no effected.

[jerber43]

Are regular income amounts ADDED to capital gains income for tax calculation purposes or are the tax rates treated as separate piles?   Example:  Cap gains $85,000 and reg inc $20,000.  Is reg income taxed at 10% or 22%?