Taxes on Ordinary Dividens

[RangerOne]

I have a brokerage account now under my wifes name. I recently had to pay some back taxes to the IRS due to a mistake in my filing.

I am trying to determine what back taxes are due to due to which portion of income.

$1317.40 of 1099-DIV ordinary dividends.

About another $1250.00 in unreported income from some temp jobs my wife worked.

My question is with regards to the ordinary dividends income. Are my only additional taxes due to the Fed the 25% from my top marginal? Or do certain payroll taxes also effect this income? From what I can tell reading online, medicare and social security should not be taxed from this 1099-DIV money, but I can't find 100% definitive explanation.

I am trying to determine how much back taxes are due to this income specifically due to the dividends. Mainly because some of the money that resulted in those additional taxes in the brokerage account is shared family money so I want to effectively pay taxes on earnings from money that is not mine. So I plan to reimburse myself from that account.

[seattlecyclone]

There's no Medicare or social security tax on income unless it came from employment (either from self-employment or a W-2 job).

[SeattleCPA]

You probably don't owe net investment income tax... but you could.

This post is probably far more gritty in its detail that you need:
http://evergreensmallbusiness.com/small-business-net-investment-income-tax/

[MDM]

From what I can tell reading online, medicare and social security should not be taxed from this 1099-DIV money

That is correct.

I am trying to determine how much back taxes are due to this income specifically due to the dividends.

Perhaps the best way to do this is to figure your taxes two ways:
1) Without the dividend income.
2) With the dividend income.

The difference between #1 and #2 is the tax due to the dividend income.

Just to stir the pot a little...
...you could also figure your taxes with the dividend income and your payroll income, and
1) Without your wife's temp job income
2) With your wife's temp job income

...and you could also figure your taxes with the dividend income and your wife's temp job income, and
1) Without your payroll income
2) With your payroll income

Good luck!

[RangerOne]

From what I can tell reading online, medicare and social security should not be taxed from this 1099-DIV money

That is correct.

I am trying to determine how much back taxes are due to this income specifically due to the dividends.

Perhaps the best way to do this is to figure your taxes two ways:
1) Without the dividend income.
2) With the dividend income.

The difference between #1 and #2 is the tax due to the dividend income.

Just to stir the pot a little...
...you could also figure your taxes with the dividend income and your payroll income, and
1) Without your wife's temp job income
2) With your wife's temp job income

...and you could also figure your taxes with the dividend income and your wife's temp job income, and
1) Without your payroll income
2) With your payroll income

Good luck!

Thanks, ideally figuring it with and without would have been the way to go. However I lost my turbo tax saves from 2014 with my recent hard drive crash.... I have transcripts so I suppose I could go and recreate them. If I just go with my top marginal at worst I will be off by a few percent on determining the tax burden imposed.

[MDM]

If I just go with my top marginal at worst I will be off by a few percent on determining the tax burden imposed.

You mean the marginal rate on qualified dividends - probably 15%, correct?

[SeattleCPA]

I understood OP to mean nonqualified dividends so taxed at ordinary income rates plus, as noted earlier, potentially the net investment income tax rate...

[MDM]

I understood OP to mean nonqualified dividends so taxed at ordinary income rates plus, as noted earlier, potentially the net investment income tax rate...

Could be.  Depends on whether "ordinary" meant "unqualified" and thus treated as ordinary income, or if "ordinary" meant "the usual type of" dividends, which would be "qualified". ;)

[SeattleCPA]

I understood OP to mean nonqualified dividends so taxed at ordinary income rates plus, as noted earlier, potentially the net investment income tax rate...

Could be.  Depends on whether "ordinary" meant "unqualified" and thus treated as ordinary income, or if "ordinary" meant "the usual type of" dividends, which would be "qualified". ;)

Good point. :-)