capital gains

[Xtrachange]

If my ordinary income, dividends and interest is 40k and I am filing single but my capital gains is 70k will I be charged 15% tax on the total 70K??

[Bsch4477]

For the 2024 tax year, individual filers won't pay any capital gains tax if their total taxable income is $47,025 or less. You will pay at the 15% rate on the amount over that threshold. 

[rjs]

Note that the $47,025 threshold applies to your taxable income, not total income or AGI. Taxable income is your total income minus adjustments and deductions. For 2023, taxable income is on Form 1040 line 15.

[Opus 17]

Roughly speaking, if all your regular income is $40K and you are filing as single, we subtract your standard deduction of $14,600 to get taxable income of $25,400.  Then, the zero percent capital gains rate goes up to $47,150.  Since $47150-$25,400=$21,750, that means the first $21,750 of the gain is taxed at zero percent and the rest is taxed at 15%.