A retired couple having only one source of income with that being a qualified dividend would pay 0 taxes up to $83,351.00 and then 15% tax on anything over. Do I understand this correctly?

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AI accountant’s answer:

You're on the right track, but let's clarify a bit. For tax year 2023, qualified dividends are generally taxed at a rate of 0%, 15%, or 20%, depending on your taxable income.

If you're a married couple filing jointly, your qualified dividends are taxed at:

- 0% if your taxable income is $89,250 or less
- 15% if your taxable income is over $89,250 but less than $553,850
- 20% if your taxable income is $553,850 or more

So, if your only income is from qualified dividends and it's $83,351, you would indeed pay 0% tax on that income. However, if your income from qualified dividends exceeds $89,250, the portion of income over that threshold would be taxed at 15%.

Remember, this is just a general overview. Your specific tax situation might be different, so it's always a good idea to double-check these things.

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