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07-10-2007, 08:16 AM
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#1
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Recycles dryer sheets
Join Date: Aug 2006
Posts: 478
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TY 2008 Tax Rates
Need some help from the tax mavens out there.I thought this info would be easy to find, but I didn't get definitive answers from a cursory google search.
What is the status of cap gains and dividends next year? I think I've heard that they are largely exempt from taxation next year only, at least for lower brackets.
And a related question - when figuring one's bracket for the purpose of determining cap gains taxes, does your bracket include the gains? IOW, if your earned income puts you in a lower bracket but including cap gains (and divs) puts you in a higher bracket, how will the cap gains tax if any be figured?
And if we do get a break on cap gains next year, do you think there will be a lot of selling pressure on the market as people rush to take advantage?
__________________
I still don't get it...
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07-10-2007, 08:23 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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Here is a tax matrix that was posted on this site a few months ago.
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07-10-2007, 08:23 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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Check out IRS Site. Instructions and Form 1040ES may provide the best easily found current information along with Publication 505.
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Vietnam Veteran, CW4 USA, Retired 1979
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07-10-2007, 08:55 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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 Quote:
Originally Posted by BOBOT
And a related question - when figuring one's bracket for the purpose of determining cap gains taxes, does your bracket include the gains?
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Yes
Quote:
Originally Posted by BOBOT
if your earned income puts you in a lower bracket but including cap gains (and divs) puts you in a higher bracket, how will the cap gains tax if any be figured?
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If your divs/cap gains put you into the 25% (or higher) bracket, that portion will be taxed at 15%. The portion that "fills up" the 10% and 15% bracket will be taxed at 0%
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07-10-2007, 09:09 PM
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#5
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Recycles dryer sheets
Join Date: Oct 2005
Posts: 325
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How do you figure out which bracket your in?
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07-11-2007, 06:19 PM
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#6
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 331
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Quote:
Originally Posted by CybrMike
How do you figure out which bracket your in?
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It's based on AGI (Adjusted Gross Income). Basically income from all sources minus things like mortgage insurance or 401k contributions.
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07-11-2007, 06:30 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Actually, it's based on your taxable income, which is your AGI minus your standard/itemized deduction and personal exemptions. The brackets for 2007 can be found here
2007 Federal Tax Rate Schedules
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