When I realized that I had entered $650 too many from a 1099-DIV, I went to TT Premier “Interest and Dividends” section and clicked “Update” button to reduce by $650 in both Box 1a and Box 1b of that 1099-DIV. I saw “Federal Refund” box started to re-calculate, but after I clicked “Continue” button I ended up on screen “Tell us if any of these uncommon situations apply to you” and the Federal Refund box shows the same refund amount as before I reduced by $650. Is it a TT Premier defect as getting less income should result in less Fed tax but my Fed refund does not change? Only the State tax went down a few dollars.
Qualified dividends, such as most of those paid on corporate stocks, are taxed at long term capital gains rates—which can be lower than ordinary income tax rates. In your case, they are being taxed at the 0% rate which is why there is no effect on your refund or amount due.
The tax law divides capital gains into two different classes determined by the calendar. Short-term gains come from the sale of property owned one year or less; long-term gains come from the sale of property held more than one year. Short-term gains are taxed at your maximum tax rate, as high as 37% in 2018. Most long-term gains are taxed at either 0%, 15%, or 20% for 2018.
Qualified dividends, such as most of those paid on corporate stocks, are taxed at long term capital gains rates—which can be lower than ordinary income tax rates. In your case, they are being taxed at the 0% rate which is why there is no effect on your refund or amount due.
The tax law divides capital gains into two different classes determined by the calendar. Short-term gains come from the sale of property owned one year or less; long-term gains come from the sale of property held more than one year. Short-term gains are taxed at your maximum tax rate, as high as 37% in 2018. Most long-term gains are taxed at either 0%, 15%, or 20% for 2018.
@TurboTaxDawnC Thank you so much! I have learned something import in taxes.