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Qualifying for the 0% Tax Rate for LTCG and Dividend Rate
ARTICLE | July 10, 2024
Authored by Vasquez + Company
Discover how you might qualify for a 0% federal income tax rate on net long-term capital gains (LTCGs) and qualified dividends, even if your income seems too high. This article breaks down the 2024 tax brackets and explains how individuals and couples can leverage this favorable rate. Learn strategies to set up loved ones for tax-efficient benefits and understand the implications for federal gift and estate taxes.
Federal Tax Brackets for LTCGs and Dividends
Your federal income tax bracket for net LTCGs and qualified dividends is determined by your taxable income, including any capital gains and dividends. Taxable income equals your adjusted gross income minus either:
- Your standard deduction, if you don't itemize, or
- Your total itemized deductions, if you itemize.
Here are the 2024 federal rate brackets for net LTCGs and qualified dividends, based on taxable income:
| LTCG Tax Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | $0–$47,025 | $0–$94,050 | $0–$63,000 |
| 15% | $47,026–$518,900 | $94,051–$583,750 | $63,001–$583,750 |
| 20% | $518,901 and up | $583,751 and up | $583,751 and up |
For more information, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
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