Breakdown of Taxes on Line 16 of IRS Form 1040.
I have been writing to the IRS for nine months now and never have received a response yet on the above question. So I can apply for a foreign tax credit on my HMRC self assessment form I need to know a breakdown of the taxes owed to the IRS by type of income. ie. Interest. Dividends. Capital Gains all separately (which then of course equal Line 16 in total after adding them together). I know the following, but whenever I try to calculate myself it adds to more than Line 16. So no good.
It is clear in 2024 that interest, dividends and short term capital gains are taxed 10% to $ 11,600, 12% to $ 47,150 and 22% to $ 100,525. Also qualified dividends and long term capital gains are taxed 0% to $ 47,025 and 15% to $ 518,900.
It is also clear in 2025 that interest, dividends and short term capital gains are taxed 10% to $ 11,925, 12% to $ 48,475 and 22% to $ 103,350. Also qualified dividends and long term capital gains are taxed 0% to $ 48,350 and 15% to $ 533,400.
Whatever that actually means in practice after you claim the standard deduction and fill out the various worksheets. It is the way the IRS came up with the amount on Line 16 to begin with so you must be able to reverse the process and say what was put into the formula to achieve the amount on Line 16.
Does anyone know anyone who knows how to calculate this breakdown properly?