Puzzle me this, Batman.....

[Possi]

So, my spork has 40k in ordinary dividends...

20k in qualified dividends

7100 of taxable state refund

(3000) capital loss carrying... (the balance after this yr is -94k)

44k AGI

Sch A 22k

3650 exemptions

taxable income 18-19k

And that is where the calculations end. The Sch D worksheet shows that there is ZERO TAX.

That's right... ZERO TAX.

What's wrong with this picture? The lawyer is asking me and I really can't explain it to him!

Tell me where to go for an explanation!

argggggg
sporks.......

[Bees Knees]

If the taxpayer is in the 10% or 15% tax bracket, long-term capital gains and qualified dividends are taxed at zero percent.

Since taxable income is less than the total of long-term capital gains and qualified dividends, the tax = zero.

[WhiteOleander]

TTB page 6-1. Capital gains are taxed at zero in certain tax brackets.

[BOB W]

TTB page 6-1. Capital gains are taxed at zero in certain tax brackets.

I believe this will end after 2010, zero tax bracket on CG. So be prepared.

[dyne]

I come up with the same ZERO tax as you did. See WK_CGTAX if you use Drake Tax
Software for the computation. Apparently all of your income is taxed at the ZERO tax rate
which is special only for the year 2009 for long-term capital gains and qualified dividends.

[Possi]

Man...

I come up with the same ZERO tax as you did. See WK_CGTAX if you use Drake Tax
Software for the computation. Apparently all of your income is taxed at the ZERO tax rate
which is special only for the year 2009 for long-term capital gains and qualified dividends.

My trustfundkid should buy a lottery ticket. She really won the prize this year!