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papadad111 · 07-29-2014, 09:04 PM

Does anyone have a 2014 tax rates guide in laymans terms? I've searched the web and cant find what I am looking for -- basically to confirm below --

As i understand

1. Qualified dividends and cap gains are at 20% tax rate now for 2014, up from 15% in 2012

2. Non qualified dividends are at marginal tax rate + 3.8% oamacare tax added to the marginal rate based IF AGI > 250K

3. Overall Federal tax rates are up by 3.8% due to obamacare tax increase presuming AGI is above 250K

Does this make sense? Did I get it correct?

Anyone care to speculate if dividends and capital gains will go up above 20%?

FIREd · 07-29-2014, 09:12 PM

For #1, qualified dividends and LTCG are taxed either at 0%, 15% or 20% based on income. If your income is high enough, you may also have to pay an extra 3.8% in Medicare taxes on top of that.

kaneohe · 07-29-2014, 09:35 PM

from Taxes on Income and Capital Gains for 2014

Long-term capital gains and qualified dividends
A top rate of 15% applies to qualified dividends and the sale of most appreciated assets held over one year (28% for collectibles and 25% for depreciation recapture) for single filers with taxable income up to $406,750 ($457,600 for married filing jointly). Long-term capital gains or qualified dividend income over that threshold are now taxed at a rate of 20%.
EXAMPLE: If a married couple already has $457,600 of taxable income and an additional $100,000 in long-term capital gains and qualified dividends, the entire $100,000 would be subject to the 20% rate. If, however, they only had $400,000 of other taxable income, then $57,600 of the additional amount would be taxed at 15% and $42,400 would be taxed at 20%.