For 2025 tax filings. TurboTax cited the following but others cite higher limits (i.e., for the 15% $600,001 as the upper limit). My question(s) are:
Does anyone know the upper limit on the 15% threshold (is it $500,000 or $600,000) and if I was fortunate enough to exceed a total taxable income of the 15% bracket and I get kicked up to the 20% rate, does the 20% rate apply to the entirety of Capital Gains, or just the amount above the aforementioned limit?
For 2025, the long-term capital gains tax rates are structured based on your taxable income and filing status.
- Married Filing Jointly:
- 0% for income up to $96,950
- 15% for income between $96,950 and $501,050
- 20% for income over $501,050