clarification on capital gains rate table

Forum|Forum|1 year ago
October 30, 2024
3 replies
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Married filing jointly. Do I understand the tax tables correctly that if my taxable income is below $94,051 then my cap gain rate is 0%, no matter how much gain i’ve accumulated throughout the year?

For example, if AGI is $200k (with $125k coming from investment income and the rest from earned income) and deductions and tax credits take this down to $94k taxable income, then the capital gains tax on my $125k is $0?

Best answer by VolvoGirl

So far I found...

The tax rate for qualified dividends and long-term capital gain is based on your total taxable income, including the capital gain. It's the taxable income on Form 1040 line 15.

See this discussion,
https://ttlc.intuit.com/community/after-you-file/discussion/capital-gain-tax-for-married-filing-joint-is-incorrect/00/3398473

MarthaT

Hello,

The tax bracket for 2024 for MFJ on capital gains is 0% if your taxable income is less then $94,050.00. The tax bracket for MFJ on capital gains for taxable income over $94,051 to $583,750.00 is 15%.

You are right, the tax is imposed only on the capital gains you have accumulated through the year.

You can find more information at A Guide to the Capital Gains Tax Rate: Short-term vs. Long-term Capital Gains Taxes - https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-gains-taxes-brokerage-accounts-etc/L7KCu9etn?srsltid=AfmBOopNZwDilMbfAvi_VO4Wwvahr4kTuV9iPIvEFzbMffrmiLIwFIP8

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Chslade

Yes, if in 2024 and your taxable income is $94,050 for married filing joint. It would be at 0% capital gain rate.

VolvoGirl

Employee

But the capital gains are included in your AGI and Taxable income. There are some recent posts about that. I'll try to find them.

sbuissonllcAuthor

were you able to locate any insight from other threads on this?

VolvoGirlAnswer

Employee

So far I found...

The tax rate for qualified dividends and long-term capital gain is based on your total taxable income, including the capital gain. It's the taxable income on Form 1040 line 15.

See this discussion,
https://ttlc.intuit.com/community/after-you-file/discussion/capital-gain-tax-for-married-filing-joint-is-incorrect/00/3398473