ST Alpha - "Dumb tax question!" (Reading a Post)

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Dumb tax question!

Posted by ty97 Feb 17 '22, 16:45

Let's say the clip level from one marginal tax bracket to another is $100. i.e If a person makes more than $100, the money over $100 is in a higher marginal tax bracket.

Now, that person made the following (assume deductions don't exist, make this simple):

$90 salary
$20 ordinary dividends
$12 qualified dividends (which is included in the $20 ordinary dividends).

So the person made $110 total. But $12 of that is taxes at the *qualified* dividend rate. Does the person's final $10 (110-100) of earnings still go into the higher marginal tax bracket?

Responses:

Spamlet/Truman, please save me from these ninnies. -- nm - ty97 Feb 17, 17:00 1
- Spamlet/Truman, I'll give you 1,000 XP each to make ty97 listen to Marlowe. -- nm - ReluctantCynic Feb 17, 17:02
Taxes is what I named my gun. The other gun is named Death. - The Accountant si Feb 17, 16:57
Yes, you need to pay them. (NM) - ReluctantCynic Feb 17, 16:51
Yes, you need to pay them. (NM) - Marlowe Feb 17, 16:49

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Dumb tax question!

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