If I am not subject to the maximum long-term capital gains rate of 15%, what rate would apply to my capital gain distributions?
A. Investors who are not in the 25% tax bracket or higher are subject to a maximum long-term gain rate of 0%. If you qualify (see IRS instructions) to enter your long-term capital gain distribution directly on Form 1040, Line 13, you must refer to the Qualified Dividends and Capital Gain Tax Worksheet included in the official 2009 IRS Form 1040 instructions to compute your tax.
A. Investors who are not in the 25% tax bracket or higher are subject to a maximum long-term gain rate of 0%. If you qualify (see IRS instructions) to enter your long-term capital gain distribution directly on Form 1040, Line 13, you must refer to the Qualified Dividends and Capital Gain Tax Worksheet included in the official 2010 IRS Form 1040 instructions to compute your tax.
Related Questions
- Are there other types of distributions from a mutual fund that may not qualify to be taxed at the lower federal long-term capital gain tax rates of 15% or 5%?
- If I am not subject to the maximum long-term capital gains rate of 15%, what rate would apply to my capital gain distributions?
- Are distributions of all corporate dividends taxed at one of the lower federal long-term capital gain tax rates of 15% of 5%?
