I hate paying federal taxes and will do everything I can to legally reduce my tax liability. Here's a great hack I discovered to reduce federal taxes. It's based on Long Term Capital Gains (LTCG) being taxed at 0% if one is in the 12% tax bracket.
In 2026, the 12% tax bracket end at $50,400 for single and $100,400 for married filing joint. This means if one's taxable income (after standard or itemized deduction, QBI and senior deduction) is below this amount, one's dividend and long term capital gains are taxes at 0%. Yes, that is no Federal tax, zero, nada.
So if one is in the 12% tax bracket, maximize your investment income by choosing to take qualified dividends and LTCG . With stock commissions at 0%, it's easy to just sell a few shares to limit one's LTCG.
Retirees and new hires and are the best candidates to take advantage of this tax reduction opportunity.
Another great tax hack from My Wealth Builder to legally lower taxes owed.
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This is not financial, investment nor tax advice. Please consult a professional advisor.
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