dmertz
Level 15

Retirement tax questions

There can also be an additive effect on your tax bracket rate if additional ordinary income pushes long-term capital gains from the 0% long-term capital gains rate to the 15% rate, increasing your marginal tax rate to 15% more than your tax bracket rate.  That will happen until all of your long-term capital gains are taxed at 15%.  This happens again at a much higher AGI (somewhere over $400,000 depending on your filing status) where the long-term capital capital gains rate transitions to 20%.