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

[shoop27]

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?

[Ernie · Accepted solution]

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

[TaxGuyBill]

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?

[rbynaker]

I think it's a budget thing.  They changed the rules on how things scale for inflation.

[shoop27]

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...

[Ernie]

@shoop27 you are welcome.  It is when you stop learning things that you have to worry.