title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Saturday, October 06, 2007
 
2008 Taxes On Dividends


Q:



Subject: '08 tax rate scheds

Thanks for info on the new bracket breaks.  I have one comment on your page.  I believe dividend income that would otherwise be in the 10-15% brackets (pre-JGTRRA) is taxed at 0% (just like LTCG) not 5%.  That's what the CBO says, but please let me know if the 5% on dividends is new information (for instance, I may have stale information).



A:



While that CCH article I quoted on the new inflation adjusted tax rate schedules didn't specifically mention the rate for qualified dividends, you are correct that they receive the same Zero tax rate as do long term capital gains for people in the lowest tax brackets.  In fact, here is how QuickFinder Online describes it:

"Tax on qualified dividends is the same rate as long-term capital gains for dividends received after 2002 and before 2011 (5% for taxpayers in the 10% and 15% tax brackets, and 15% for taxpayers in the 25% and above tax brackets). A zero percent rate applies to taxpayers in the 10% and 15% brackets for 2008 – 2010."
I will add this info to the 2008 tax rate page on my website.

I appreciate your bringing this item to my attention.

Kerry Kerstetter


 


 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 10/06/2007 06:03:00 PM Send this post:

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