The tax rate computed on your Form 1040 must consider any taxfavored items, such as qualified dividends and longterm capital gains, which are generally subject to lower tax rates.

Qualified dividends and LTCG are subject to either a 0%, 15%, or 20% tax rate, depending upon your overall income level.

If you received qualified dividend income or longterm capital gains during 2021, you'll need to use the regular federal tax tables, as well as the qualified dividend and capital gain tax worksheet.

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