nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
I just realized that if you keep your annual income in the 15% tax bracket you pay 0% tax on qualified dividends. I plan to live of $14k rental income and $14k of dividends. Assuming those dividends are all qualifying and I just take the standard deduction and one exemption I end up paying $450 tax.
I take $9500 off my regular income for my standard deduction and one exemption leaving $4500 to be taxed at the 10% level which is $450. There is no tax due on the $14k of qualified dividends as I'm in the 15% tax bracket. Combine this with a ROTH and you can almost say goodbye to taxation.
I take $9500 off my regular income for my standard deduction and one exemption leaving $4500 to be taxed at the 10% level which is $450. There is no tax due on the $14k of qualified dividends as I'm in the 15% tax bracket. Combine this with a ROTH and you can almost say goodbye to taxation.