tax question

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Joined: Fri Feb 22, 2019 4:41 am

tax question

Post by eameece » Fri Feb 22, 2019 4:45 am

A google site said this was a place to ask tax questions. On the qualified dividends and capital gains worksheet, page 40 of 1-4- instructions, my taxable income on line 1 was smaller than my capital gains in line 6. The worksheet ended up showing that not only do I not owe capital gains taxes, I owe no tax AT ALL on form 1040 (line 11a). Is this correct?

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Joined: Fri Aug 28, 2015 7:21 am

Re: tax question

Post by floridacatlover » Sun Mar 10, 2019 10:51 am

This is NOT the best place for tax questions. Go to a free AARP tax advisor in your local community if you are over age 60. If you are under age 60 they will help you or point you to another source. ... _DEC23_010

I am not a tax expert so DO check with a professional or call the IRS.

BUT, I am familiar with the worksheet you asked about. (Finally figured it out after many years.) If most of your income is from qualified dividends and capital gains and you are single with taxable income under $38,600 or married with taxable income under $77,200, you pay no tax on qualified dividends and capital gains (line 6 on the worksheet). Standard deduction has doubled for 2018 so this may have lowered your taxable income from years past. So it’s very possible that your tax on line 11 could be $0. That may not be the end of the story, however.

If you received an ACA (Obamacare) Advance premium credit and received too much (Schedule 2) or had other taxes on Schedules 3 or 4, you must add those amounts. ALSO if you had more withheld (line 18) than you owe, be sure that you get that money back as a refund.

Good luck.

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