Does Long Term Capital Gain increase my other net income tax bracket? Where can I find complete IRS tax calculations?

[trevecpa]

Does Long Term Capital Gain increase my other net income tax bracket?

[Bsch4477 · Accepted solution]

Your capital gain is part of your total income (AGI) but your capital gain is taxed separately and depends upon your taxable income which includes the deduction of your standard deduction and other adjustments as seen on your 1040. See your capital gain worksheet for the calculations. 

[VolvoGirl]

There are like 7 different ways to calculate the tax.
It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from Schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all the worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet. And you will need to use this IRS worksheet on page 15.
https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

IRS Qualified Dividends and Capital Gain Tax Worksheet—Line 16 on 1040 instructions page 37
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[Hal_Al]

Q.  Does Long Term Capital Gain increase my other net income tax bracket?

A. No.  Although the capital gain increases your total income, your "other income" is taxed first, at the original bracket rate.  

Q. Where can I find complete IRS tax calculations?

A. The qualified dividends and capital gains worksheet. (for some people, it's the Schedule D worksheet).  TurboTax will prepare the worksheet.