Taxable income 2010 = $47800. Tax due $6848.
Taxable income 2013 = $46715. Tax due $3115.
Tax taken from Qualifed Dividends and Capital gain worksheet.
Has anything changed so drastically in the tax calculations that I should be paying more than half of my 2010 amount on T.I. that is only abut $1K less? Should I be looking for some kind of error or can anything logical account for this? It looks very suspect to me, but I can't find anything wrong, at least in the 2013 calculations.
Thanks.
It should not be that big of a change. Look elsewhere in your return for clue. Perhaps your 2013 income is almost all qualified dividends (so some would be taxed at 0% some at 15%). Look at the Qualified Dividends and Capital gain worksheet for each year that your tax program generates, and compare them.
It does appear to be the qualified dividends. I suspected that but needed a push to track the calculations on that worksheet. They aren't competely identical since something was added for high income people this year , but I could see a much higher percentage of my dividends were getting taxed at 0%. Thanks.
That rule applies to single people making 400k a year or more, or married and 450k or more.
That certainly leaves me out!
Is that the married part of the over $400K per year part? If the former, perhaps arrangements can be made...
jo
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