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Investing - Theory, News & General • Preparing for 2026 tax brackets

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NIIT applies only to investment income.
The dollar of Roth conversions that pushes your income to $250,001 results in a dollar of dividends being taxed an additional 3.8%, so your marginal tax rate is 27.8%.
Would it be more accurate to say that at 250,001 (MFJ), the marginal tax bracket applicable to each type of investment income goes up by 3.8 percentage points - e.g., up to 18.8% for qualified dividends and LTCG if those are otherwise taxed at 15%?

Statistics: Posted by Pdxcess — Sat Jun 29, 2024 3:48 am — Replies 65 — Views 8480



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