Today TaxMama hears from John in the TaxQuips Forum, who lays out his issue.
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(shortened) “I’m amending my 2009 Form 1040 return and have a question about the result I am getting on the Qualified Dividends and Capital Gains Tax Worksheet. Despite having qualified dividends of $45,224, I keep ending up with 0 tax. Can that be right?”
Dear John,
You definitely need to thank the Legislature for the last-minute session where they passed the Extender Bill.
That’s what reinstated that 0% tax on qualified dividends and capital gains for folks in the 15% tax bracket.
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Yes, I think you’re doing it correctly. Isn’t that terrific?
You may want to use software to double-check your entries. But I think you’re going to get the same results!
What a terrific windfall!
BUT…beware. Your state might not have complied with IRS laws.
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So be careful when you prepare your state tax return.
And remember, you can find answers to all kinds of questions about dividends, capital gains and other tax issues, free. Where? Where else? At www.TaxMama.com.
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