Can some one please tell me which tax bracket will be my income (Roth conversion) of $36,000 if I went ahead and take long term capital gain if $120k in the same year (not counting standard deduction) ,I am looking at the tables at the end of this article and wanted clarification :
1) is it still 12 % for single filer or
2) the $35 k income is going to be in the 24% bracket while my LTCG is still at 15%
thanks for your replies .
its a lot more complicated because there are stages at which LTCG gets taxed a 0% and tax rates are incremental some income gets taxed at lower rates additional income gets taxed at higher rates. . an estimate would be that $15,000 of LTCG would be taxed at 0%, the other $105,000 at 15%. your taxable distribution is reduced by the standard deduction so you are taxed on only $24,000. about $9500 gets taxed at 10% with the balance taxed at 12% (it's like capital gains are ignored when computing taxes on ordinary income)
I kind of know LTG is @ 15 but I am trying to find out if my conversion , say $ 35k is at 12 % or at the higher bracket . It helps me know whether to do a conversion or not if I take a LTG if $100k the same year or just do the Roth conversion a different year . Thanks again