Hot Tips For The New Tax Year Part 10

Capital Gain and Qualified Dividend Maximum Tax Rates. For 2018, the breakpoints no longer follow the tax brackets for regular income tax purposes. The breakpoints are as follows:

  • Single Taxable Income $ 0 to 38,600 maximum rate = 0%
    38,601 to 425,800 maximum rate = 15%
    425,801 and over maximum rate = 20%
  • MFJ or QW Taxable Income $ 0 to 77,200 maximum rate = 0%
    77,201 to 479,000 maximum rate = 15%
    479,001 and over maximum rate = 20%
  • MFS Taxable Income $ 0 to 38,600 maximum rate = 0%
    38,601 to 239,500 maximum rate = 15%
    239,501 and over maximum rate = 20%
  • HOH Taxable Income $ 0 to 51,700 maximum rate = 0%
    51,701 to 452,400 maximum rate = 15%
    452,401 and over maximum rate = 20%
  • Estates and Trusts Taxable Income $ 0 to 2,600 maximum rate = 0%
    2,601 to 12,700 maximum rate = 15%
    12,701 and over maximum rate = 20%

The breakpoints for the 25% maximum rate for unrecaptured section 1250 gain, and the 28% maximum rate for 28% rate gain follows prior law. Thus, the 25% and 28% maximum rates apply when taxable income exceeds the 24% tax bracket for regular income tax purposes

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