I sold stock in 2018 and will see approx. $77,000 in capital gains. Our joint income in 2018 will be approximately $90,000. What will the capital gain tax be?

[jgusmus]

We are retired and expect to use the standard deduction of $24,000 in this tax year.

[Lisa995]

Does that 90K include the 77K or is that in addition to the 77K?

[jgusmus]

It is in addition to the 77K.  Thanks.

[Hal_Al · Accepted solution]

Assuming your $90,000 other income already includes the taxable portion of social security, and you have no other tax attributes (e.g. child tax credit) dependent on AGI, a $77,000 long term capital gain will result in $9840 additional tax. $11,800 will be taxed at 0% and 65,600 will be taxed at 15%.

Turbotax will prepare the "Qualified dividends and capital gains worksheet" to show the tax calculation. The worksheet is complicated because it's designed for multiple scenarios. But, for your simple situation the calculation goes like this:

 $90,000 Adjusted Gross  income (AGI)

-24,000 Standard deduction

= 66,000 taxable income

$77,400 Threshold for 22% bracket where LTCG are taxed at 15%

-66,000 taxable income

= 11,400 LTCG taxed at 0%

77,000  Total LTCG

-11,400 taxed at 0%

= 65,600 taxed at 15%

65,600 x 0.15 = $9840

[SweetieJean]

https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rates/

Remember state taxes as well.

[SweetieJean]

If you are receiving Social Security benefits, a higher percent of those could be taxable due to the overall increase in income.

[jgusmus]

Yes.  Thanks

[Critter]

If you want to play around with different figures and tax scenarios without affecting your original return you can 

>>> In the TurboTax CD/Download software by creating a test copy: 

1.  Open your return in TurboTax. 

2.  From the File menu, choose Save As. 

3.  Give the copy a new name to distinguish it from the original (for example, by adding "Test" or "Example" to the file name). 

4. Click  Save. You are now safely working in the test copy and anything you do here will not affect the original. 

 https://ttlc.intuit.com/questions/1900642-how-to-make-a-test-copy-of-your-return

>>  use the WHAT IF tool: 

- Click Forms Icon (upper right of screen) or Ctrl 2 (forms view) 

- Click on the Open Form Icon 

- In the “Type a form name.” area type What-If (with the dash), click on the name of the worksheet - click on Open Form 

- You will see the worksheet on the right side of the screen; enter the information right into the form ...pick the 2018 tax  year

- To get back to interview mode - click on the Step-by-Step Icon (upper right of screen) or Ctrl 1

[Hal_Al]

With the new tax laws, taking effect in 2018,  using 2017 software to do a test 2018 return is not as accurate as it used to be. However, for purposes of capital gain tax, it will be closer than other uses.

You could also try this tool: Try this tool <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1">https://turbotax.intuit.com/tax-to...>. Enter your regular income first to see the regular tax. Then add the capital gain to see the effect.