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For 2008, the tax rate on capital gains is reduced to 0 percent for income under the normal 15 percent bracket. If our income moves us into a higher bracket, do we get a 0 percent tax on a portion of the capital gains? Also, does this 0 percent rate apply to qualified dividends?

Long-term capital gains and qualifying dividends for the 2008 tax year will be taxed at 0 percent if your other taxable income does not exceed the 15 percent tax bracket for your filing status. For single filers, that is taxable income under $32,550; for married, filing joint that is taxable income under $65,100.

If your long-term capital gains and dividends are pushing you through the 15 percent bracket, they are taxed at 0 percent to the extent that gets you to the top of the taxable bracket, and the remainder of long-term capital gains and qualifying dividends are taxed at 15 percent no fax payday advance.

Once all of your other taxable income exceeds the 15 percent bracket, based on your filing status, your taxable income will be calculated based on the tables plus 15 percent tax on your long-term capital gains and qualifying dividends.
The intricacies of these new rules create planning opportunities throughout 2008.

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