Hot Tips for The New Tax Year Part 5

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

Single Taxable Income
$ 0 to 39,375 maximum rate = 0%
39,376 to 434,550 maximum rate = 15%
434,551 and over maximum rate = 20%

MFJ or QW Taxable Income
$ 0 to 78,750 maximum rate = 0%
78,751 to 488,850 maximum rate = 15%
488,851 and over maximum rate = 20%

MFS Taxable Income
$ 0 to 39,375 maximum rate = 0%
39,376 to 244,425 maximum rate = 15%
244,426 and over maximum rate = 20%
HOH Taxable Income
$ 0 to 52,750 maximum rate = 0%
52,751 to 461,700 maximum rate = 15%
461,701 and over maximum rate = 20%
Estates and Trusts Taxable Income
$ 0 to 2,650 maximum rate = 0%
2,651 to 12,950 maximum rate = 15%
12,951 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

Check back each week for more tax tips from Tax & Accounting Plus