No. of Recommendations: 1
After playing with Turbotax and carefully reading the IRS forms, the truth appears to be this:
1) Compute your taxable income without dividends[*].
2) The amount of dividends[*] that are taxed at 0% is that amount which brings your taxable income to the top of the 15% bracket. (70,700 in 2012, 72,500 in 2013, for MFJ)
3) All dividends above that are taxed at 15%.
2a) If your taxable income without dividends is already more than 70,700, then all the dividends are taxed at 15%.

[*] Strictly: long-term capgains plus qualified dividends.

Very nice summary. I can't find anything to correct. (Although high income folks should be aware that starting for 2013, if you get into the 39.6% bracket, the tax rate on your qualified dividends and long term capital gains goes up to 20%. That high income threshold is $450k for MFJ and $400k for singles.)

And kudos to you for checking it out yourself.

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