DawnC
Employee Tax Expert

Get your taxes done using TurboTax

Those amounts are capital gains tax bracket calculators.   The income up to those levels are taxed at one rate and the income over those levels are taxed at a different rate.  Long-Term capital gains are taxed at either 0%, 15%, or 20%.    Short-term capital gains are taxed at ordinary income tax rates.   The worksheet separates the different categories and applies the correct tax rate to each block of income depending on the holding period.   

 

A Guide to the Capital Gains Tax Rate: Short-term vs. Long-term Capital Gains Taxes   This link has the tax bracket charts for LT and ST.   The numbers in the worksheet correspond to the numbers in the tax bracket charts.  

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