Qualified Dividend and Capital Gains Tax Worksheet?

The tax rate computed on your Form 1040 must consider any tax-favored items, such as qualified dividends and long-term capital gains, which are generally subject to lower tax rates.

Qualified dividends and LTCG are subject to either a 0%, 15%, or 20% tax rate, depending upon your overall income level.

If you received qualified dividend income or long-term capital gains during 2021, you'll need to use the regular federal tax tables, as well as the qualified dividend and capital gain tax worksheet.

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#QualifiedDividends #CapitalGainsTaxes #Form1040

[christiankirkpatrick]

'THANK YOU for explaining this. After struggling for several hours to understand how to report my qualified dividends, I now understand. Your video has saved me from calling the IRS.

[glennwest]

Very nice explanation, Jason. You're a natural, well organized teacher!

[MarshBrik]

this answered all of my questions thank you

[BendcA]

Two years in a row I filed my own taxes and paid full taxes on my dividends and two years in a row the IRS corrected it for me and I struggled to understand what I did wrong. Another video mentioned I needed to fill out this worksheet but my google skills was not finding it anywhere except an example from 2018. I had no idea the worksheet was located in the instruction booklet. I was trying to find it on the IRS website as a downloadable form (Like the 1040 itself). I can't believe I'm about to say this but I am now looking forward to tax season 2024. Thanks

[oatssettle]

Thank you so much❣❣❣
You helped me immensely by pointing to the worksheet in the 1040 booklet. I have wasted many hours trying to make sense of all the forms, and why I would still be paying regular tax rate when I shouldn't have to.
YOU ARE MY HERO❣❣❣

[lizs]

Thanks, this was so helpful in understanding my taxes for last year and planning estimated tax payment amounts for this year.

[stephenspeas]

Very nice Mr. Knott. Thank you for doing this!

[edwardhaughney]

I am impressed with this presentation.

[tomm]

Thanks Jason. That's just what I wanted to know about reporting LTCG.

[strangergranger]

Excellent work. I stumble on this video because I’m searching about taxes. However, the topic I want to know more is not related on this one. By any chance, do you have a video about the opposite of this one? Which one pays more in taxes between the three, regular job, short term capital gains, or non qualified dividend??? I will binge watching your videos to learn more. Thank you and bless you.

[jcgoogle]

Nice video on this subject, unfortunately it's under my range.

Do you have a video that goes through the Qualified Dividends and Capital Gain Tax Worksheet where capital gains are between the $40, 400 0% threshold and the $445, 850 20% threshold?

I put this form on a spreadsheet and when it goes through all of the gyrations with my numbers, it's making me put the original $40, 400 back in line 20 and making me pay 20% on the $40, 400.on line 21. I know that's not correct. The overall concept should be normal tax rates on the normal income, 0% on the first $40, 400 of capital gains and then 15% on the remainder of capital gains above $40, 400 and below $445, 850.

Either I'm doing something wrong or there's an error in the math flow on this sheet.

Thx

[mikethurm]

Outstanding explanation, Jason. Just the right amount of detail and best of all, saved me a ton of money!

[MuzixMaker]

So the tax on income from QD and CG is determined separately by the overall taxable income?

[dave_in_dayton]

Excellent work Jason. I agree with the previous comment - you have a natural gift for explaining material of this type to those of us who don't work with accounting & taxes on a routine basis. THANKS.

[dannyl]

Is there a link to a google sheets or excel spreadsheet that does these calculations?

[Goddess-Winner]

Hi Jason, i took out excess distribution and if capital gains is 20 percent, it shouldnt be too bad.

[WheatBread]

Thanks. Can previous year’s capital loss carryovers be used to offset qualified dividend income greater than the $3, 000 (assuming there are no other capital gains)?

[Jason_Maier]

Mr. Knott

Thank you for a simole explanation of the worksheet.

Also, how is "Head of Household" defined?

What software package(s) do you use for your clients?

[barbaralorell]

Thank you for the video. Still not 100% clear on my potential situation. I hope you can answer for me. I would like to sell my home. I was renting it for a few years and just moved back, so I can get the exclusion for being here for 2 years to avoid LTCG tax. However, I am making zero money right now, and will be in the 0% bracket for LTCG. I might net 150K. I understood that all of that would be at 0% since I'm so low income. But by filling out the worksheet, I'm thinking I got that wrong. Is it 0% on the first 41, 675, and then 15% over and above that? I would love to not have to stay the whole 2 years -- that's why I'm looking into this. Everything I read said that capital gains would not push you into a higher income tax bracket. Thank you in advance!

[dennisshaughnessy]

John can you tell me if Line 12 can be a negative number? This would result in Line 17 being negative and then line 18 as a negative percentage.