Tax Stacking Question

[joesxm3]

I would try to figure using turbo tax but that computer just died.

To make sure I am understanding correctly.

If I have interest up to the standard deduction, I pay no tax.

If I add LTCG up to the 12% max, that is taxed at 0%.

If I add $10,000 more LTCG, I pay 15% tax on the $10,000. But the LTCG one line up is still taxed at 0%.

So with all three in the picture I pay $1500 tax.

Is this correct?

Thanks.

 

[RunningBum]

Yes, with the very minor correction that the point at which LTCGs start being taxed at 15% is not exactly at the top of the 12% tax bracket. They used to be, but now they are separated for some odd reason, even though they are very close.

 

[pb4uski]

+1 OP was on the right track though. The difference is $125 for a single and $250 for a couple. Stupid that they haven't aligned them.

Capital gains tax rate	Single (taxable income)	Married filing separately (taxable income)	Head of household (taxable income)	Married filing jointly (taxable income)
0%	Up to $47,025	Up to $47,025	Up to $63,000	Up to $94,050
15%	$47,026 to $518,900	$47,026 to $291,850	$63,001 to $551,350	$94,051 to $583,750
20%	Over $518,900	Over $291,850	Over $551,350	Over $583,750