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levydbo
Level 2

Why am I showing no taxes due on taxable income of $37,892

I have no taxes due on taxable income of $37,892 of income.  My Total income is $81,309 which comes entirely from dividends and interest.  My allowed deductions are $43,417, of which $10,339 is the allowed deduction from medical expenses (that portion over 7.5% of AGI).  I called turbo tax and she said that there was no tax because the income was not earned income, however, I don't understand this as dividends and interest are calculated at the income rate (unlike capital gains).  Can someone give me some feedback

4 Replies
tagteam
Level 15

Why am I showing no taxes due on taxable income of $37,892


@levydbo wrote:

.....dividends and interest are calculated at the income rate (unlike capital gains)....


Check your qualified dividends. Qualified dividends are not taxed at your "regular" rate; they are basically taxed at the same rate as long-term capital gains.

 

See https://www.irs.gov/publications/p550#en_US_2020_publink100010075

levydbo
Level 2

Why am I showing no taxes due on taxable income of $37,892

Thank you

levydbo
Level 2

Why am I showing no taxes due on taxable income of $37,892

Thank you. Dividends are not taxed below $78,000 or so of income. 

tagteam
Level 15

Why am I showing no taxes due on taxable income of $37,892

Correct. It depends upon your filing status, however.

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