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General Discussion => Share Your Badassity => Topic started by: fidreamer on March 11, 2017, 01:45:43 PM

Title: shifting to new tax rate
Post by: fidreamer on March 11, 2017, 01:45:43 PM

So I am most likely going to leave my job this year (cue the roller coaster of emotions from elation to terror). One of the things I am excited about is dropping down to the 15% federal tax rate.  Between the married filing jointly deduction, traditional ira's, sep ira and 403b contributions, I think I can squeeze under the limit...as they are now anyway ; )  So if I get to the 15% rate does that mean that the dividends in my taxable account do not get taxed?  This seems to good to be true.

Title: Re: shifting to new tax rate
Post by: johnny847 on March 11, 2017, 01:49:43 PM

For your qualified dividend income, it's just the portion that fits into the 15% bracket that get taxed at 0% at the federal level

See http://www.fiby40.com/2015/01/13/capital-gains-taxes/ (http://www.fiby40.com/2015/01/13/capital-gains-taxes/) (QDI has the same tax treatment of LTCG)

Title: Re: shifting to new tax rate
Post by: fidreamer on March 11, 2017, 01:58:12 PM

Johnny847, thank you for this article!!!  I think I will need to read about three times before I fully get it, but it's very helpful.