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Qualified Dividends and Capital Gains Tax Worksheet using wrong limits??

shoop27
Level 2

The limit for a Married couple to fall within the 12% tax bracket for $0 tax on Qualified Dividends & Capital Gains for 2018 is $77,400.  The program is still using 2017 limits & $77,200?? Am I seeing this wrong?

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Ernie
Level 9

No, the breakpoints no longer follow the tax brackets for regular income tax purposes.  For 2018 the breakpoint for MFJ is 77,200.

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5 Replies 5
Ernie
Level 9

No, the breakpoints no longer follow the tax brackets for regular income tax purposes.  For 2018 the breakpoint for MFJ is 77,200.

View solution in original post

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TaxGuyBill
Level 15
Interesting, I did not realize that, but I looked it up and you are right.

But now comes the question: Why the %^#$%$%# would Congress do that?  Weren't they supposedly trying to "simplify" things?
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rbynaker
Level 11
I think it's a budget thing.  They changed the rules on how things scale for inflation.
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shoop27
Level 2
Well how bout that.  I had a client that hovered just around the limit & I happened to notice it.  I appreciate the responses & the clarification.  Thanks guys.  And good job ProSeries! Like TaxGuyBill said, they can never make things easy. As always, learn something new every day in this business...
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Ernie
Level 9
@shoop27 you are welcome.  It is when you stop learning things that you have to worry.
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