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Subject:  Re: LT Capital Gains in Retirement Date:  12/3/2013  8:19 PM
Author:  ptheland Number:  119621 of 129380

my understanding is that in 2014 there is a zero percent federal tax rate on long-term capital gains and qualified dividends for joint income less than $73,800.

That has been the case for many years now - although the $73,800 figure has been adjusted annually for inflation, and from time to time through legislation. It's nothing new.

So am I correct that we'll pay zero federal taxes on qualified dividends and long-term capital gains?

Yes, to a point.

And if so, do the qualified dividends and long-term capital gains get factored into the $73,800 limit?

Yes, they do.

Also, that 73k figure is taxable income, not total income. So it is your income after subtracting personal exemptions and either itemized or standard deductions. So your total income could be significantly more than $73k and you'd still be under $73k in taxable income.

Finally, if your qualified dividends and LTCG push you over the $73k figure, only the amount over that would be taxed. You'd still get the benefit of a 0% rate on the amounts under $73k.

There are many good discussions of this all over the internet.

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