Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Thank you for your question, and thanks for using JustAnswer.com. With the level of dividend
income that you have, you would not be in the 15% bracket. Your dividend income is included when you calculate your tax bracket, although then that income is given a preferential rate
. So, even though you had no jobs and paid no income tax on wages, you were still above the 15% tax bracket and therefore the tax you paid is correct. You were in the 25% tax bracket.
The new law for 2013 will affect you. Instead of being taxed at 15%, your dividends will be taxed as ordinary income
. With $100,000 per year, if you take the standard deduction
, your tax will be about $12,200 and you will be in the 25% tax bracket. The reason that your tax is not 25% of your income is because our tax rates
increase, so you pay 10% on so much income, 15% on a little more, and then 25%. The estimated
tax is just a rough estimate. CLICK HERE
to read more.
Please let me know if any of this is unclear. Thanks again for using JustAnswer and have a happy New Year.
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.