topic for purposes of determining ltcg rate of 0%, does Taxable Income include deducting capital loss carry-over? in Get your taxes done using TurboTax

for purposes of determining ltcg rate of 0%, does Taxable Income include deducting capital loss carry-over?

neworchid — Mon, 02 Mar 2026 22:39:12 GMT

Re: for purposes of determining ltcg rate of 0%, does Taxable Income include deducting capital lo...

MindyB — Mon, 02 Mar 2026 22:53:34 GMT

Yes. When you are determining your long-term capital gains tax rate, you are eligible for 0% capital gains rate if your taxable income is $48,350 or less ($96,700 or less if you are married filing jointly). Your taxable income is calculated after all allowable deductions and losses have been applied to your gross income, including any capital loss carry-overs used.

Re: for purposes of determining ltcg rate of 0%, does Taxable Income include deducting capital lo...

neworchid — Mon, 02 Mar 2026 22:58:15 GMT

Here's some more details (I didn't realize I posted question 2x):

MFJ, one spouse over 65 and partially retired, other spouse retiring. Capital loss-carryover from prior years, assume 10K; LTCG well over this amount. I understand there's a "taxable income" threshold of 98.9K for 2026 to get the 0% LTCG rate. Question: Will the "taxable income" test be applied strictly to what's on Line 15 of the 1040 (which would show the net LTCG - after deducting capital loss carryover of 10K)? Or will there be any special rules for this test - like adding back the capital loss carryover?