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OBC
Nov 3, 2006, 08:59 PM
Hello,

Can someone guide me in determining what taxes I will be paying on a non-qualified dividend in 2006 with a 1099? I live in NY, my primary employment income is $110k, and the 1099 will be for $10k in dividends.

Thanks.
AtlantaTaxExpert
Nov 4, 2006, 06:03 AM
At an income of $120K (salary plus dividend), and assuming you are single, your federal marginal tax rate (the rate you pay on the last dollar you earn in 2006) is 28%.

The 28% tax bracket starts at around $73K and ends at about $155K, so you are solidly in the middle of the bracket.

Bottom Line: You are going to pay 28% on the unqualified dividend.