I keep a spreadsheet for income tax planning and am having trouble getting one thing straight.
Example: Taxpayer, married filing jointly, has 30k in income from retirement plan distributions, interest, and dividends. Plus 25k in social security. About 4k of the social security is taxable.
If taxpayer realizes a 20k capital gain it is taxed at 0% as they are below the ceiling of the 15% tax bracket.
Question: will realizing the gain increase the amount of the social security benefit subject to taxation?
Example: Taxpayer, married filing jointly, has 30k in income from retirement plan distributions, interest, and dividends. Plus 25k in social security. About 4k of the social security is taxable.
If taxpayer realizes a 20k capital gain it is taxed at 0% as they are below the ceiling of the 15% tax bracket.
Question: will realizing the gain increase the amount of the social security benefit subject to taxation?