rjs
Level 15
Level 15

Get your taxes done using TurboTax

"Earned" income has nothing to do with capital gains or your tax bracket. Earned income is income from working.


The capital gain is included in your total income and your taxable income. The tax bracket that applies to long-term capital gain is based on your total taxable income, including the capital gain.


Taxable income is total income minus adjustments and either itemized deductions or the standard deduction. Taxable income is on Form 1040 line 15. You have not given enough information to calculate your taxable income. You can use TaxCaster to get an estimate of your taxable income and your tax.