Tax on Stock

Forum|Forum|1 year ago
June 26, 2024
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Is there an additional tax on stock over the 15% long-term gain federal tax if you are over a certain income level? What is that level and what is the tax if there is?

Ask the Experts - Retirement II - June 2024

K M W

Long term capital gains and qualified dividends are taxed at a lower tax rate than ordinary income. Under current tax law, they can be taxed at a 0%, 15%, or 20% rate, depending on the amount of your taxable income and your filing status.

Per the IRS, for 2024 the maximum capital gains tax rates are:

FILING STATUS	0% RATE	15% RATE	20% RATE
Source: Internal Revenue Service
Single	Up to $47,025	$47,026 – $518,900	Over $518,900
Married filing jointly	Up to $94,050	$94,051 – $583,750	Over $583,750
Married filing separately	Up to $47,025	$47,026 – $291,850	Over $291,850
Head of household	Up to $63,000	$63,001 – $551,350	Over $551,350

Additionally, depending on your income, you may be subject to the Net Investment Income Tax (NIIT). The NIIT is a 3.8% additional tax that applies if your modified adjusted gross income is over $250,000 if married filing jointly or qualifying surviving spouse, over $125,000 if married filing separately, or over $200,000 if filing single or head of household.

This additional tax is assessed on the lesser of the net investment income or the income over the above listed thresholds.

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