--- title: Why is there $0 of taxable ordinary income when there is ordinary income included in the scenario? description: Wondering why the Tax Report shows $0 of taxable ordinary income even though there is income in the scenario? It may have to do with deductions. --- [Skip to content](https://help.holistiplan.com/why-is-there-0-taxable-ordinary-income#main-content) English Show submenu for translations [More support](https://help.holistiplan.com/kb-tickets/new?hsLang=en) [![Holistiplan Logo (800x200 px).webp\]](https://help.holistiplan.com/hs-fs/hubfs/Holistiplan%20Logo%20(800x200%20px).webp?width=160&height=40&name=Holistiplan%20Logo%20(800x200%20px).webp)](https://www.holistiplan.com/) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.holistiplan.com/kb-tickets/new) Holistiplan Knowledge Base - There are no suggestions because the search field is empty. 1. [Help Center](https://help.holistiplan.com/?hsLang=en) 2. [Tax Reports](https://help.holistiplan.com/tax-reports?hsLang=en) 3. [Tax Report FAQ](https://help.holistiplan.com/tax-reports?hsLang=en#tax-report-faq) # Why is there $0 of taxable ordinary income when there is ordinary income included in the scenario? ## Wondering why the Tax Report shows $0 of taxable ordinary income even though there is income in the scenario? It may have to do with deductions. Let’s look at an example: Robert and Roxanne are in a lower-income tax year. They are retired and have no wage income, and haven’t started receiving Social Security benefits yet. They decided to convert some of their IRA to Roth, and will sell some appreciated stock for long-term capital gains. Their income includes: - $1,200 Taxable Interest - $3,555 Total Dividends ($3,200 of which are qualified) - $45,000 Taxable Roth Conversion - $97,000 Long-Term Capital Gains   This results in a **total income of $146,755** and, after the standard deduction and enhanced senior deduction are applied, **taxable income of $99,255**. We can see these values in the **Key Figures** section found at the top of the Tax Report. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Feb-05-2026-03-55-18-1284-PM.png?width=670&height=133&name=image-png-Feb-05-2026-03-55-18-1284-PM.png) When we view the Tax Report for the scenario, we see in the **Marginal Tax Brackets: Ordinary Income** section that there is $0 of taxable ordinary income despite ordinary income in the scenario in the form of a Roth conversion, taxable interest, and ordinary dividends. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Feb-05-2026-03-56-57-5688-PM.png?width=670&height=295&name=image-png-Feb-05-2026-03-56-57-5688-PM.png) The reason for $0 of taxable ordinary income is a result of how deductions are applied. Deductions, like the standard deduction, Enhanced Senior Deduction, and QBI Deduction (to name a few), reduce ordinary income *first*. In the scenario, ordinary income totals $46,555. This includes:  - $1,200 taxable interest - $355 ordinary dividends ($3,555 total dividends - $3,200 qualified dividends) - $45,000 taxable Roth conversion Total deductions are $47,500: - $35,500 standard deduction - $12,000 enhanced senior deduction Because total deductions are greater than total ordinary income, $0 of the client's $46,555 ordinary income is taxable and therefore they have $0 of *taxable* ordinary income. The detailed calculation is illustrated below. Deductions first reduce ordinary income: - $46,555 (ordinary income) - $47,500 (deductions) = -$945 Now, there's an excess deduction of $945, which now reduces *qualified* income. - $97,000 (long-term capital gains) + $3,200 (qualified dividends) - $945 (remaining deductions) = **$99,255 *taxable* qualified income** ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Feb-05-2026-07-49-25-2192-PM.png?width=534&height=392&name=image-png-Feb-05-2026-07-49-25-2192-PM.png) - [Getting Started at Holistiplan - 101](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#main-content) - [How to Contact Support](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#how-to-contact-support) - [Ready to Get Started?](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#ready-to-get-started) - [Getting Started with Your Households](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#getting-started-with-your-households) - 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