Olde Hornet
Well-Known Member
Interesting read, not sure how true.
Here's another incentive to purchase more dividend-paying stocks this year
www.fool.com
The same is true for certain types of income earned from the stock market, but the brackets involved are different: Most money made via investing will fall within the brackets of 0%, 15%, or 20%. While most people's investment-related income will be taxed at 15% due to their non-investment income, it isn't impossible for yours to fall into the 0% tax bracket -- especially if the majority of your income is derived from dividends.
Here's the key: You can only get tax-free treatment on as much dividend income as leaves you with total taxable income -- including those dividends -- of less than $40,401 as a single filer or less than $80,801 as a married couple filing jointly. Also, as you'll see below, your dividends must be considered qualified. But first, take a look at the 2021 qualified dividends tax table to see the full list of income levels for various tax rates.
Here's another incentive to purchase more dividend-paying stocks this year
How to Claim Over $80,000 in Tax-Free Income by Investing in Dividend Stocks | The Motley Fool
Here's another incentive to purchase more dividend-paying stocks this year.
www.fool.com
Taking advantage of the 0% tax bracket
As every adult American rapidly learns, income from ordinary employment is taxed in brackets. The more you earn, the higher the marginal rate will be on the share of your income that falls into your top bracket.The same is true for certain types of income earned from the stock market, but the brackets involved are different: Most money made via investing will fall within the brackets of 0%, 15%, or 20%. While most people's investment-related income will be taxed at 15% due to their non-investment income, it isn't impossible for yours to fall into the 0% tax bracket -- especially if the majority of your income is derived from dividends.
Here's the key: You can only get tax-free treatment on as much dividend income as leaves you with total taxable income -- including those dividends -- of less than $40,401 as a single filer or less than $80,801 as a married couple filing jointly. Also, as you'll see below, your dividends must be considered qualified. But first, take a look at the 2021 qualified dividends tax table to see the full list of income levels for various tax rates.
