Ask Experts Questions for FREE Help !
Ask
    OBC's Avatar
    OBC Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 3, 2006, 09:59 PM
    Determining 1099 tax rate
    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 4, 2006, 07:03 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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Tax rate on sale of home [ 3 Answers ]

If I sell a my home within two years of purchase and can't use the exclusion clause, and if I am in the minimum tax bracket, what will be the capital gains tax rate charge for sale of my home? Thanks

1099 without tax id [ 1 Answers ]

I am still preparing the 1099 forms. One contractor fails to provide us his tax id. IRS 1099 instructions indicate that there may be penalty for not providing the tax id. Shoud I still file the 1099 for him without the tax ID? Or it is better off not to file at all.

1099 Tax Questions... [ 1 Answers ]

I have absolutely no idea what to do when tax time comes around next year. I just started a new job with an at home Receptionist/Telemarketing position that is an independent contractor type position. I need to know what documents, receipts, and forms that I need to keep/get for next years tax...

OPT Tax rate in New york city [ 3 Answers ]

Hi. I am an Indian student on OPT about to start work in a non profit organisation. I wanted to know how much is the OPT tax in New York? My OPT ends on July 19,2006. My income will be around 30-35k during this year.

1099 Tax [ 1 Answers ]

Hi, I am working as a software engineer on W2 base. Also, I am doing a second job that is 1099 Misc basis. Last year on 1099, I paid a huge tax rate like 40%. So my question is how can I reduce the tax rate on second job. My friends advaced me to start a new company. Is it necessary to start a...

View more questions Search