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January 22, 2023
Question

Capital Gains Tax

  • January 22, 2023
  • 1 reply
  • 0 views

We sold some land in 2022 and had a Capital Gain on Long Term Asset.  We are both retired and live on Social Security so are income is low.  Is the Capital Gains tax figured on Total Income, Adjusted Gross Income or Taxable Income? 

 

Thanks

1 reply

Employee
January 22, 2023

Taxable income determines your long term capital gains tax rate. 

Ruby14Author
January 22, 2023

Our taxable income (line 15) shows 66,999 and we file Married Jointly.  My understanding is the threshold for this married filing jointly is 83,350 which would be 0 tax rate.  Why did Turbo Tax calculate a tax owed on this capital gain?

Hal_Al
Employee
January 22, 2023

Review the Qualified Dividends and Capital Gains worksheet for the calculations.