Hi, Lets say my yearly income is 100K and I'm married filing jointly, this puts me in the 22% tax bracket. If I decided to sell stock with a capital long term gain of 200K I would be at the 15% tax rate. Would the 200K get added to the 100K and push me into the 24% tax bracket? Or are the two amounts tax separately?
Hello,
Any type of capital gain will increase your AGI (Adjusted Gross Income) and you might not be eligible to claim certain credit because of higher AGI, but long term capital gain will not push you to higher tax bracket. Your total income will decide at what rate you will pay the long term capital gain tax but your other income will not be pushed into higher bracket because of that.
If it was a short term gain, then you will be pushed into higher tax bracket.
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TurboTax Expert
Hello,
Any type of capital gain will increase your AGI (Adjusted Gross Income) and you might not be eligible to claim certain credit because of higher AGI, but long term capital gain will not push you to higher tax bracket. Your total income will decide at what rate you will pay the long term capital gain tax but your other income will not be pushed into higher bracket because of that.
If it was a short term gain, then you will be pushed into higher tax bracket.
**Please cheer or say thanks by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Regards,
TurboTax Expert