In this week’s episode of his YouTube series State of the Market, Chief Income Strategist Marc Lichtenfeld takes on the elephant in the room… the coming tax hike.
There has been talk about raising taxes on dividend income and capital gains – so in this week’s episode, Marc explains where the guidelines stand now and where they could be going in the near future.
Here at Wealthy Retirement‘s publisher, The Oxford Club, we like to say that it’s not what you make that matters – it’s what you keep. And if you make more than $1 million this year in taxable income, what you keep could drastically change.
The table below shows what tax rates on regular dividend income look like now…
The good news is that if you make $40,400 or less this year (for single payers) or $80,800 or less for joint filers, you still won’t owe tax on regular dividends.
Here’s the bad news…
According to the Biden administration’s proposed tax policy, the top dividend tax rate could soar as high as 39.6% for filers with incomes of $1 million or more.
Whether it does – or whether it is negotiated down – remains to be seen.
For the rest of the changes outlined in the new tax proposal – including a new procedure for calculating capital gains on inherited stock profits of more than $1 million – be sure to check out this week’s video.
Marc reveals what the potential changes could mean for you – as well as what you can do to prepare.
<<Click here to watch this week’s episode.>>