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Level 1
posted Jan 9, 2021 6:27:14 AM

What's the long term capital gain rate if I don't work? My understanding is 0%. So if my capital gain tax is more than my income, why not quite my job? I am confused. Thx

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1 Best answer
Level 15
Jan 9, 2021 7:38:22 AM

Your capital gains tax rate is based upon your taxable income. 

 

Most taxpayers pay 15% on their long-term capital gains, but that rate is 0% if your taxable income is less than $80,000. 

 

See https://www.irs.gov/taxtopics/tc409

 

Obviously, taxable income would include both your net gains and your income from your job.

1 Replies
Level 15
Jan 9, 2021 7:38:22 AM

Your capital gains tax rate is based upon your taxable income. 

 

Most taxpayers pay 15% on their long-term capital gains, but that rate is 0% if your taxable income is less than $80,000. 

 

See https://www.irs.gov/taxtopics/tc409

 

Obviously, taxable income would include both your net gains and your income from your job.