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Old 08-02-2019, 09:37 PM
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Question Capital gains and qualified dividends for 2019

Hi TaxGuru,
Up to and including the 2017 tax year, my understanding was that for those taxpayers in the 10 and 15% tax brackets, long-term cap gains and qualified dividends were taxed at 0%. For married-filing-jointly, this typically meant that with a taxable income below $75,900, you would pay no tax on this income.
However, the new tax law that went into effect in 2018 changed the tax brackets. What is the new threshold of taxable income below which long-term capital gains and qualified dividends still enjoy 0% tax?



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Old 08-03-2019, 08:38 AM
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The 2018 long term capital gains tax rate is holding steady through 2019, but the income required for each rate has changed: $0 - $78,750for mfj filers. l mean the 2019 long-term capital gains tax brackets is $78,750



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Old 08-03-2019, 07:09 PM
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Thanks!
Does this mean that if our taxable income for 2019 is less than $78,750 (for MFJ), our capital gains is not taxed?
So, it's the 2 lowest tax brackets that have this "benefit"?



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Old 08-05-2019, 03:39 AM
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Quote:
Originally Posted by 2davidc8 View Post
Thanks!
Does this mean that if our taxable income for 2019 is less than $78,750 (for MFJ), our capital gains is not taxed?
So, it's the 2 lowest tax brackets that have this "benefit"?
Ultimately, the capital gain / loss you compute on Sch D of 1040is combined with your other income / loss to figure your tax on Line 44 of Form 1040. Sch D
of 1040 and Form 8949 are included with Form 1040 when you file your 1040 with the IRS.



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Old 08-05-2019, 08:38 PM
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Yes, understood. Thank you!



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