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
.....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.