Playing with some tax numbers

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rec7
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Playing with some tax numbers

Post by rec7 » Sun Dec 11, 2016 11:14 pm

If a single person age 55 only had 9k in qualified dividends, 9k in ordinary dividends, and a 9k in long term gains what would he federal tax bill be?
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

jane1
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Re: Playing with some tax numbers

Post by jane1 » Sun Dec 11, 2016 11:17 pm

Zero, I would think. Trick question?

JoinToday
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Re: Playing with some tax numbers

Post by JoinToday » Mon Dec 12, 2016 12:50 am

No earned income or other sources of income?

If not, jane1 is right
I wish I had learned about index funds 25 years ago

gerntz
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Re: Playing with some tax numbers

Post by gerntz » Mon Dec 12, 2016 8:36 am

Buy a tax prep program & plug in the numbers.

rec7
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Re: Playing with some tax numbers

Post by rec7 » Mon Dec 12, 2016 8:52 am

Thanks everybody I was not sure. I am guessing a AGI of about 17k. The online calculators were from 0 to 2k for a tax bill. So I wanted to check with you folks.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

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PhysicianOnFIRE
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Re: Playing with some tax numbers

Post by PhysicianOnFIRE » Mon Dec 12, 2016 9:04 am

Yes, zero.

With a standard deduction and personal exemption, you'll have no taxable income. LTCG and QD are not taxed in the 0%, 10%, or 15% federal income tax brackets, so you've got a lot of room for additional income before incurring any tax.

It's easy to come up with scenarios like these in which no tax is owed on much higher incomes (six figures).

:beer
-PoF

rec7
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Re: Playing with some tax numbers

Post by rec7 » Mon Dec 12, 2016 9:08 am

PhysicianOnFIRE wrote:Yes, zero.

With a standard deduction and personal exemption, you'll have no taxable income. LTCG and QD are not taxed in the 0%, 10%, or 15% federal income tax brackets, so you've got a lot of room for additional income before incurring any tax.

It's easy to come up with scenarios like these in which no tax is owed on much higher incomes (six figures).

:beer
-PoF
Does the AGI sound about right at around 17k?
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

Davistax
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Re: Playing with some tax numbers

Post by Davistax » Mon Dec 12, 2016 10:00 am

rec7 wrote:
PhysicianOnFIRE wrote:Yes, zero.

With a standard deduction and personal exemption, you'll have no taxable income. LTCG and QD are not taxed in the 0%, 10%, or 15% federal income tax brackets, so you've got a lot of room for additional income before incurring any tax.

It's easy to come up with scenarios like these in which no tax is owed on much higher incomes (six figures).

:beer
-PoF
Does the AGI sound about right at around 17k?
AGI would be $ 27,000

kaneohe
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Re: Playing with some tax numbers

Post by kaneohe » Mon Dec 12, 2016 10:21 am

rec7 wrote:
PhysicianOnFIRE wrote:Yes, zero.

With a standard deduction and personal exemption, you'll have no taxable income. LTCG and QD are not taxed in the 0%, 10%, or 15% federal income tax brackets, so you've got a lot of room for additional income before incurring any tax.

It's easy to come up with scenarios like these in which no tax is owed on much higher incomes (six figures).

:beer
-PoF
Does the AGI sound about right at around 17k?
pls tell us how you got 17K by adding 2 (or 3) 9Ks.

kaneohe
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Re: Playing with some tax numbers

Post by kaneohe » Mon Dec 12, 2016 10:24 am

rec7 wrote:Thanks everybody I was not sure. I am guessing a AGI of about 17k. The online calculators were from 0 to 2k for a tax bill. So I wanted to check with you folks.
which calculators did you use? try the hr block one and then discard the others or the operator :happy

jane1
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Re: Playing with some tax numbers

Post by jane1 » Mon Dec 12, 2016 10:29 am

kaneohe wrote:
rec7 wrote: Does the AGI sound about right at around 17k?
pls tell us how you got 17K by adding 2 (or 3) 9Ks.
Or is 17k taxable income after subtracting standard deduction and personal exemption from AGI?

rec7
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Re: Playing with some tax numbers

Post by rec7 » Mon Dec 12, 2016 10:50 am

I thought AGI is income after subtracting standard deduction and personal exemption? I should have said 18k LOL
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

kaneohe
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Re: Playing with some tax numbers

Post by kaneohe » Mon Dec 12, 2016 11:00 am

jane1 wrote:
kaneohe wrote:
rec7 wrote: Does the AGI sound about right at around 17k?
pls tell us how you got 17K by adding 2 (or 3) 9Ks.
Or is 17k taxable income after subtracting standard deduction and personal exemption from AGI?
16.65K according to hrblock..........probably need to have an interpreter here to make sure all are using the
same words the same way :happy AGI vs taxable income; qualified vs ordinary dividends vs total ordinary dividends.

Well.........got that AGI vs taxable income resolved. Now how about the dividends?
Do you mean 9K are qualified and 9 K are not which means total ordinary dividends are 18K of which 9K are qualified?
Or do you mean that 9K are qualified and 0 are not which means total ordinary dividends are 9K of which all 9K are
qualified ?

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grabiner
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Re: Playing with some tax numbers

Post by grabiner » Tue Dec 13, 2016 10:17 pm

rec7 wrote:I thought AGI is income after subtracting standard deduction and personal exemption? I should have said 18k LOL
No, AGI is total income with a few specific adjustments such as deductible IRA contributions and student loan interest. You then subtract the personal exemptions, and standard or itemized deductions, to get taxable income.
Wiki David Grabiner

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