Here’s the formula for paying no federal income taxes on $100,000 a year

Karsten Jeske
Here’s the formula for paying no federal income taxes on $100,000 a year

The question of how much can we earn without paying federal income taxes is relatively easy to answer for most people. The standard deduction for a married couple is $24,400 in 2019 (if both are under 65 years old), and the top of the 0% capital-gains tax bracket is $78,750. With our daughter, we also qualify for the child tax credit ($2,000), so we could actually generate another $13,333 per year in dividends or capital gains, taxed at 15%.