A taxpayer filing at single has $$25,600$ of taxable income included in gross income is a $1099$ INT with box one interest income of $$5000$ tax exempt interest of $$3000$ and interest on US savings bonds of $$1200$ additionally the taxpayer has a $1099$ DIIV with dividend income of $$3000$ of $$2000$ is qualified dividends and capital gains distributions of $$500$ dollars