capital gains tax rate for 2021

[fasteddie577]

I read that in 2021, individual filers won’t pay any capital gains tax if their total taxable income is $40,400 or less. Does this include short term capitals gains on stocks or is this only long-term CGs? Thanks

[GeorgeDenseff]

It includes short and long term capital gains.

[Mike9241]

capital gain losses are netted against capital gains.  net short-term capital gains are taxed as ordinary income. 

also important is whether you have any other income.

assuming standard deduction single taxpayer $12,550

1) LTCG and/or qualified dividends  $52,950 = no federal tax ($52,950-$12,550 = $40,400 taxable income)

2) STCG and/or other ordinary income $52,950 = federal tax about $4,700 on same taxable income of $40,400 

3) LTCG and/or qualified dividends $52,950 and ordinary income of $10,000 = federal tax about $1,500

4) LTCG $32,950 STCG $20,000 tax about $750

5) LTCG $32,950, STCG $20,000 other ordinary income $10,000 = federal tax about $3,400

[fasteddie577]

Thank you.