Can you explain Social Security income and taxable income from a brokerage account? I was hit with a large tax bill two years ago because I exceeded the limit with a taxable account withdraw. Very unpleasant.
Even with a non-dividend focused portfolio, if someone has enough invested to retire on, they're likely to receive a fair amount of dividends. Could you discuss how receiving, say, $12K a year in dividend income from your taxable account might affect this? It is my understanding that qualified dividends are taxed as capital gains, and I assume, would count towards the same limits as realizing a (long term) capital gain through stock sales, while non-qualified dividends (from something like a REIT) would be treated as ordinary income, but it would be nice to have this confirmed.
Thanks for providing the "Ann" scenario!
This was so incredibly helpful. Thank you!
Can you explain Social Security income and taxable income from a brokerage account? I was hit with a large tax bill two years ago because I exceeded the limit with a taxable account withdraw. Very unpleasant.
Even with a non-dividend focused portfolio, if someone has enough invested to retire on, they're likely to receive a fair amount of dividends. Could you discuss how receiving, say, $12K a year in dividend income from your taxable account might affect this? It is my understanding that qualified dividends are taxed as capital gains, and I assume, would count towards the same limits as realizing a (long term) capital gain through stock sales, while non-qualified dividends (from something like a REIT) would be treated as ordinary income, but it would be nice to have this confirmed.