Capital Gains Tax

[Ruby14]

We sold some land in 2022 and had a Capital Gain on Long Term Asset.  We are both retired and live on Social Security so are income is low.  Is the Capital Gains tax figured on Total Income, Adjusted Gross Income or Taxable Income? 

Thanks

[Bsch4477]

Taxable income determines your long term capital gains tax rate. 

[Ruby14]

Our taxable income (line 15) shows 66,999 and we file Married Jointly.  My understanding is the threshold for this married filing jointly is 83,350 which would be 0 tax rate.  Why did Turbo Tax calculate a tax owed on this capital gain?

[Hal_Al]

Review the Qualified Dividends and Capital Gains worksheet for the calculations. 

[Ruby14]

I want to thank everyone for their help!

[TomD8]

Remember that "taxable income" includes the capital gain itself.

[Ruby14]

Yes it has answered my questions regarding  Capital Gains.

Thank You!