@Matt 126 wrote:
Hi no its still no impact. I finished all the way. It is because of our joint filing standard deduction of 25900?
If your regular income is in the 10% or 12% bracket, long term capital gains have zero tax. Once you move up to the 22% tax bracket, long term gains are taxed at 15%.
For a married couple filing jointly, the 12% bracket ends at $83,550 of taxable income. When you add the standard deduction of $25,900, that means that first $109,450 of gross income is taxed at 12% or less, so you are in the zero bracket for long term capital gains. With an income of $98K plus 8.5K of capital gains minus the standard deduction, your long term capital gains are tax-free.
If you added more income, so that your total income (including the capital gains) was more than $109,450, you would start to see 15% tax on part or all of the gain.
