![]() If so, consider gifting them some appreciated stock or mutual fund shares. Is your income too high to benefit from the 0% rate on long-term capital gains and qualified dividends? You may have children, grandchildren or other loved ones who qualify for the break. How Can High-Income People Help Loved Ones Cash In? To the extent that these hypothetical taxpayers have above-the-line deductions, their adjusted gross income could be that much higher without falling outside the 0% rate bracket for long-term gains and dividends.Īdditionally, if an individual itemizes deductions - rather than taking the standard deduction - his or her adjusted gross income (including long-term capital gains and dividends) could be even higher than levels illustrated by these examples. Self-employed health insurance premiums, and.Health savings account (HSA) contributions,.Deductible retirement account contributions,.The adjusted gross income figures provided in these examples don't take into account any above-the-line write-offs, such as: After claiming the standard deduction of $12,000, her taxable income is $38,600, which is the top of the 0% bracket for long-term capital gains and qualified dividends for singles. Her adjusted gross income (including long-term capital gains and dividends) is $50,600. ![]() Dana files as a single taxpayer for 2018.After claiming the standard deduction of $18,000, his taxable income is $51,700, which is the top of the 0% bracket for heads of households. His adjusted gross income (including long-term capital gains and dividends) is $69,700. Carlyle uses head of household filing status for 2018.After claiming the standard deduction of $24,000, the couple's taxable income is $77,200, which is the top of the 0% bracket for long-term capital gains and qualified dividends for joint filers. Their adjusted gross income (including long-term capital gains and dividends) is $101,200. ![]()
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