Do long-term capital gains get taxed directly at 15-20% and then the amount of income factor into what tax bracket I'm in?

[Critter]

@Starskii       Correct ... since your regular income is negated by the standard deduction then the cap gains all gets cap gain treatment.

[Critter]

@gparadis308 

Run the worksheet mentioned in the prior post to see the actual taxes ... but the simple answer really isn't simple ... the taxes are not static ... we have a graduated tax system so it is not a flat rate on all of the gains  but the cap gains will be taxes at a floating rate with  a max rate of 20%.  

[demof]

Hello

I actually have the same issue as the person who started this thread.  On my 2019 TT return (1040-SR), my LTCG was used in the calculation of my AGI which I believe you said it wouldn't be. ?  This year, I have the same issue and it will push me into another tax bracket if added to my AGI not to mention taxed at the income rate. I understand the idea that LTCG are taxed at certain rates rather than aded to taxable income however, as I am looking at the 2019 return as I write this, the LTCP IS added to my AGI.

[Critter-3]

Ok ... so the LTCG is added to your income on the 1040 and will be part of the AGI and can affect things like taxable SS benefits.     THEN later on the 1040  ... when it comes to computing your taxes the worksheet is used.  These are separate items.  

[Hal_Al]

Your understanding is incorrect.

1. Your long term capital gain (LTCG) is part of your AGI calculation.

2.  LTCG are taxed at certain rates, but which rate depends on your other income.  LTCG are added to taxable other income . 

Your regular income is first taxed at the lower rates (10 & 12%).  Your LTCG are added to other income to determine your next higher tax bracket.  But rather than being taxed at the higher rate (next usually 22%), they are instead taxed at the lower LTCG rate (starting at 15%).

For details, see the Qualified Dividends and Capital Gains worksheet (abbreviated "Qual Div/Cap Gn" on the forms list)