Qualified Dividend and Capital Gains Tax Worksheet?

[@christiankirkpatrick7198]

'THANK YOU for explaining this. After struggling for several hours to understand how to report my qualified dividends, I now understand. Your video has saved me from calling the IRS.

[@JasonDKnott]

I'm glad it was helpful. Thank you for watching!

[@Bendc1970A1]

Two years in a row I filed my own taxes and paid full taxes on my dividends and two years in a row the IRS corrected it for me and I struggled to understand what I did wrong. Another video mentioned I needed to fill out this worksheet but my google skills was not finding it anywhere except an example from 2018. I had no idea the worksheet was located in the instruction booklet. I was trying to find it on the IRS website as a downloadable form (Like the 1040 itself). I can't believe I'm about to say this but I am now looking forward to tax season 2024. Thanks

[@LemonySnicket-EUC]

I also was in this boat the last few years so I just let them keep correcting it for me. No harm no foul. But this year they sent me a letter telling me I need to fill out the schedule D and send it back or else. 😮 So here I am for 2023.

[@jcgoogle1808]

Nice video on this subject, unfortunately it's under my range. Do you have a video that goes through the Qualified Dividends and Capital Gain Tax Worksheet where capital gains are between the $40,400 0% threshold and the $445,850 20% threshold? I put this form on a spreadsheet and when it goes through all of the gyrations with my numbers, it's making me put the original $40,400 back in line 20 and making me pay 20% on the $40,400.on line 21. I know that's not correct. The overall concept should be normal tax rates on the normal income, 0% on the first $40,400 of capital gains and then 15% on the remainder of capital gains above $40,400 and below $445,850. Either I'm doing something wrong or there's an error in the math flow on this sheet. Thx

[@strangergranger10]

Excellent work. I stumble on this video because I’m searching about taxes. However, the topic I want to know more is not related on this one. By any chance, do you have a video about the opposite of this one? Which one pays more in taxes between the three, regular job, short term capital gains, or non qualified dividend??? I will binge watching your videos to learn more. Thank you and bless you.

[@glennwest1949]

Very nice explanation, Jason. You're a natural, well organized teacher!

[@JasonDKnott]

I appreciate that! Glad the video was helpful!

[@dammaralifrieri4130]

Thanks!

[@MuzixMaker]

So the tax on income from QD and CG is determined separately by the overall taxable income?

[@tomm7505]

Thanks Jason. That's just what I wanted to know about reporting LTCG.

[@oatssettle846]

Thank you so much❣❣❣ You helped me immensely by pointing to the worksheet in the 1040 booklet. I have wasted many hours trying to make sense of all the forms, and why I would still be paying regular tax rate when I shouldn't have to. YOU ARE MY HERO❣❣❣

[@WheatBread006]

Thanks. Can previous year’s capital loss carryovers be used to offset qualified dividend income greater than the $3,000 (assuming there are no other capital gains)?

[@lizs502]

Thanks, this was so helpful in understanding my taxes for last year and planning estimated tax payment amounts for this year.

[@JasonDKnott]

Glad it was helpful!

[@Jason_Maier]

Mr. Knott Thank you for a simole explanation of the worksheet. Also, how is "Head of Household" defined? What software package(s) do you use for your clients?

[@Goddess8888-Winner]

Hi Jason, i took out excess distribution and if capital gains is 20 percent, it shouldnt be too bad.

[@JS-fo1md]

IS IT POSSIBLE TAX SOFTWARE MISSES CORRECTLY ASSESSING the tax for Qualified divs and taxings it at ordinary income rate (1040, line 3b)

[@pmgb1202]

I was wondering that also. So what I did was put both qualified and regular dividends in the regular box to see if it made a difference. It did, a big difference. So I kept the dividends separate even though i could not see where the lower rate fit in..

[@dennisshaughnessy4273]

John can you tell me if Line 12 can be a negative number? This would result in Line 17 being negative and then line 18 as a negative percentage.

[@dennisshaughnessy4273]

Sorry John - I found my mistake - Thanks for the helpful video

[@JasonDKnott]

Glad it was helpful!

[@jacquelinemora738]

When completing a Mississippi tax return afterwards how would you apply this to the tax return to avoid paying state tax on your qualified dividends income?

[@anupamsingh2943]

My biggest confusion: Is the capital gains line on 1040 a sum of Short Term and Long Term gains from Schedule D?

[@dannyl6507]

Is there a link to a google sheets or excel spreadsheet that does these calculations?

[@barbaralorell709]

Thank you for the video. Still not 100% clear on my potential situation. I hope you can answer for me. I would like to sell my home. I was renting it for a few years and just moved back, so I can get the exclusion for being here for 2 years to avoid LTCG tax. However, I am making zero money right now, and will be in the 0% bracket for LTCG. I might net 150K. I understood that all of that would be at 0% since I'm so low income. But by filling out the worksheet, I'm thinking I got that wrong. Is it 0% on the first 41,675, and then 15% over and above that? I would love to not have to stay the whole 2 years -- that's why I'm looking into this. Everything I read said that capital gains would not push you into a higher income tax bracket. Thank you in advance!

[@tribalvibes1]

Unclear. If you're in the middle zone, are all of the qual. divs taxed at 15% or only the excess beyond the ~$40k tier ? I.e. the first $40k still gets 0%?

[@kimchee94112]

Is it possible to get a clean worksheet like the video for next year return? The one from the IRS is always grayed out and hard to read.

[@JasonDKnott]

The worksheet used in this video was generated using our tax software, which was Drake Tax Software. You might be able to find a clean worksheet online, but generally the IRS form instructions is the only reliable source on the internet....

[@dave_in_dayton]

Excellent work Jason. I agree with the previous comment - you have a natural gift for explaining material of this type to those of us who don't work with accounting & taxes on a routine basis. THANKS.

[@JasonDKnott]

Thank you for the support! I'm glad to hear the videos are helpful.

[@mathman43]

A question Jason: If you have a large capital loss, but a large amount of dividends, can we do anything besides the $3,000 capital loss for the current year?

[@billjoyce2905]

Excellent explanation! It may have just been my ignorance, but the need to use the "Qualified Dividends and Capital Gains Worksheet" to obtain the lower long-term tax rates did NOT clearly stand out in the IRS instructions. Thank you!

[@JasonDKnott]

You're welcome!

[@MarshBrik]

this answered all of my questions thank you

[@drewnorth8985]

Schedule d is still combining short term gains/losses with long term gains/losses to report on line 7 of the 1040 so your video does not explain how to treat each one separately. I understand your video but i do not understand how to tax my short term gains/losses at a different tax rate if they are being combined on schedule d.

[@stephenspeas2608]

Very nice Mr. Knott. Thank you for doing this!

[@JasonDKnott]

My pleasure!

[@mikethurm6346]

Outstanding explanation, Jason. Just the right amount of detail and best of all, saved me a ton of money!

[@sarahthomas2303]

Standard deduction is subtracted from ordinary income. Not long term gains.

[@edwardhaughney9665]

I am impressed with this presentation.

[@cjeccher8128]

doesn't at least some of you cap gains and qualified dividends get taxed at zero percent (if you ordinary income does not fill that bracket) and if you go over that line only that portion get taxed at 15 % or higher

[@YourOnlineDad101]

So if my wife and I make 150k with our day jobs and we make 70k of qualifying dividends on top of that, the dividends would all be taxed at 15%?

[@liyakhatali9643]

Excellent explanations

[@JasonDKnott]

Thank you! I’m glad it was helpful

[@ednabernal8914]

Great explanation. Tk U!

[@JasonDKnott]

You are welcome!

[@davejoseph5615]

Some people seem to believe that you get a 0% rate for the first $40,400 of long-term capital gains -- but this is clearly incorrect.

[@BC-dg8tp]

Very helpful 👌 Make sense 👏

[@JasonDKnott]

Glad it was helpful!

[@jjmars9160]

Great Advise. Thanks.

[@JasonDKnott]

Glad it was helpful!

[@deannacarpenter9939]

well done. thanks.

[@JasonDKnott]

Thanks for watching!

[@cjeccher8128]

Bueller ? Beuller ? anyone anyone just kidding but you do sound like Ben Stein