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$0 tax?

February 1st, 2025 at 04:46 pm

Quick recap: 2024 was the first full year of my journey into retirement.

I just filed my taxes for 2024, and without earned income, all that is left is me living off of and filing my dividend interest... right?

While I was aware of basic stuff like dividend interest tax brackets, and qualified vs unqualified dividends, etc. the bottom line is I would not certain of what exactly is my tax burden will be until I actually file it, which again was today.

Much to my pleasant surprise, the computer is saying I owe exactly $0 in taxes!  To clarify, my dividend interest fell under the $47k limit for 0% tax, for those filing single, and that's before standard deductions.

I don't think my tax situation could be any simpler, but it also makes a part of me a bit anxious, thinking maybe I forgot a step somewhere.

For now though, it's filed and hopefully goes through.  In the meantime, does anyone see anything weird with this situation that I should be aware of?

Posted in Uncategorized | 7 Comments »

7 Responses to “$0 tax?”

  1. rob62521 Says:
    February 1st, 2025 at 06:34 pm 1738434860
    1738434860

    I can't help you as far as tax information, but share your concern since my dh and I will be filing together for the first time. But if your computer program said you owe 0, I would imagine that's correct. Hope it is true!

  2. Tabs Says:
    February 1st, 2025 at 06:38 pm 1738435118
    1738435118

    Quick update: The filing has been accepted! I hope it means everything is OK.

  3. LifeBalance Says:
    February 1st, 2025 at 09:25 pm 1738445153
    1738445153

    Yay! Hopefully it's for real.

    Like Rob, I can't offer any tax help, and I have a first-time tax event this year too - the ACA subsidies. It'll be another couple of weeks before I have all my tax forms, then I'll have my moment of truth.

  4. mumof2 Says:
    February 3rd, 2025 at 03:34 am 1738553673
    1738553673

    yah I hope that is true and you don't have to pay any taxes

  5. Dido Says:
    February 3rd, 2025 at 01:08 pm 1738588125
    1738588125

    Should be fine, although acceptance of a return provides zero assurance that it is accurate. You could, for example, have left off a tax form, and in that case, you'd be getting a CP-2000 letter from the IRS in June or earlier after they run the tax returns through their matching algorithms to make sure that all income reported to them by your financial institutions matches the income reported to them by YOU.

    Would line 15 (taxable income less deductions) be a negative number if you weren't required to put zero if the number is negative? If so, you might consider a Roth conversion in the coming year. You don't want to do enough to lose any ACA subsidy you have (which is based on your total taxable income + tax-free interest), but you might not want to waste an opportunity if you could avoid it.

  6. LivingAlmostLarge Says:
    February 6th, 2025 at 01:55 am 1738806942
    1738806942

    Yay congrats.

  7. Tabs Says:
    February 6th, 2025 at 06:11 pm 1738865514
    1738865514

    Thanks everyone!

    And thank you Dido especially for providing such useful details in your comments. Yes, I would like to start the Roth conversion next year. Or could I start this year, even though my taxes are already filed? The taxes has been accepted and no further action is needed from me.

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