Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Hypotheticals for single unemployed 30-yo US taxpayer, 2013:

earned income: $0
1099-DIV/INT income: $11,250

If there were any unemployment benefits received, there would likely also be income from a 1099-G that needs to be accounted for.

(1) If I'm understanding the 0% scenario correctly, this person should absolutely try to harvest $25,000 in long-term capital gains (the $36,250 limit - $11,250 above). From a Federal taxation perspective anyway;

If the taxpayer has a traditional IRA, converting some/all of it to a Roth IRA may actually be a better way to use the tax benefit, since long term capital gains are (currently) taxed at lower rates than the ordinary income rates that IRA conversions are taxed at.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.