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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13343
Experience:  15years with H & R Block. Divisional leader, Instructor
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I invested in the stock market this year I am doing good, I

Customer Question

Good morning, I invested in the stock market this year I am doing good, I am 59 retired SDI income. Now am I going to have to pay taxes on that money earned threw the dividens?
Submitted: 2 months ago.
Category: Tax
Expert:  Robin D. replied 2 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Customer: replied 2 months ago.
Ok thanks for your time.
Expert:  Robin D. replied 2 months ago.

Dividends are considered either “qualified” or “nonqualified.”

Qualified dividends are:

  • Tax-free for those with income falling within the 10% and 15% brackets to the extent qualified dividend income remains within those brackets
  • Taxed at a 15% rate for those with income falling within the 25% to 39.6% tax brackets
  • Taxed at a 20% rate for higher income taxpayers whose income surpasses the 39.6% tax bracket

Nonqualified dividends are taxed at the same rates as ordinary income.

You may have no actual tax to pay on the dividends. If SSDI is your only other source of income and dividends are not over $25000 you will not have tax to pay.

Expert:  Robin D. replied 2 months ago.

If you would like me to do a rough estimate of your 2016 tax I would need to know income amounts (dividends, SSDI , any other income) and your filing status.

I would be happy to do the estimate.

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