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How is a Dividend Deducted to get AGI?
I'm trying to figure out the adjusted gross income but don't know what to do with dividend income of $3500. Do I deduct the full $3,500 or am I supposed to figure out the tax bracket?
6 Answers
- Anonymous1 decade agoFavorite Answer
If you are asking about qualified dividends, the dividends are included in the AGI as part of line 9A. When you calculate your tax, that's when the dividends get the better tax rate.
- JudyLv 71 decade ago
The dividend is part of the AGI, it isn't deducted. Fill in the form and add and subtract what the form tells you to, to get the AGI.
- Let me steer youLv 71 decade ago
Ordinary Dividends are added to your income to get your AGI. You enter the amount on line 9a of form 1040. Enter the amount from the form 1099 DIV you received.
- 1 decade ago
Limitations apply when it comes to investment expenses tax deductions. In fact, deductions from investment expenses should amount only to 2% of your AGI. So if, for instance, you have an AGI of $100,000 and investment expenses of $4,000, your deductions will be $2,000. This is how it is calculated: Get 2% of your AGI by multiplying your AGI by .020 ($100,000 x .020 = $2,000). Subtract 2% of the AGI from your investment expenses to get the total deduction ($4,000 - $2,000 = $2,000). If your total investment expenses go beyond the 2% limit, the extra amount will be added to your deductions the following tax year.
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- bourgetLv 44 years ago
you may in straight forward terms take care of self employment earnings in the way you propose. If the two jobs are pronounced on a W-2 sort as earnings you're concern to the two% threshold on you "finished AGI"
- Anonymous1 decade ago
It isn't. It goes on Schedule B and increases AGI.