It depends. It may be that your taxable income was capital gains. Check out your Schedule D and the capital gains worksheet or the qualified dividends and capital gains worksheet in your return. I have posted the capital gains tax rates below for 2023.
A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $44,625 for single and married filing separately;
- $89,250 for married filing jointly and qualifying surviving spouse; and
- $59,750 for head of household.
A capital gains rate of 15% applies if your taxable income is:
- more than $44,625 but less than or equal to $492,300 for single;
- more than $44,625 but less than or equal to $276,900 for married filing separately;
- more than $89,250 but less than or equal to $553,850 for married filing jointly and qualifying surviving spouse; and
- more than $59,750 but less than or equal to $523,050 for head of household.
However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
Also, below is the standard deductions for 2023:
For single taxpayers and married individuals filing separately, the Standard Deduction is $13,850 in 2023.
For married couples filing jointly is $27,700, and
For heads of households, the Standard Deduction is $20,800
If you're at least 65 years old or blind, you can claim an additional deduction in 2023 of:
- $1,850 for single or Head of Household
- $1,500 for married or Qualified Surviving Spouse.
If you're both 65 and blind, the additional deduction amount is doubled.
Please update here if you have more questions or can provide more details.
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