Let's say your single and you make:
$91,900 in Qualified Dividends.
Let's say you make $9325 in Regular Income (after all Deductions.)
Both of these Incomes are Taxed at different rates. How do you figure out the rates?
Does the $9325 Regular Income get taxed first and use a 10% Tax Rate?
Or since Total Income is $101,225, you use the 28% Tax Bracket, so then the $9325 Regular Income is taxed at the 28% Rate?
I know the Qualified Dividends will be Taxed at a lower Rate.
Can anyone clarify?
Thanks!