clarification on capital gains rate table

[sbuissonllc]

Married filing jointly.  Do I understand the tax tables correctly that if my taxable income is below $94,051 then my cap gain rate is 0%, no matter how much gain i’ve accumulated throughout the year?  

For example, if AGI is $200k (with $125k coming from investment income and the rest from earned income) and deductions and tax credits take this down to $94k taxable income, then the capital gains tax on my $125k is $0?

[MarthaT]

Hello, 

The tax bracket for 2024 for MFJ on capital gains is 0% if your taxable income is less then $94,050.00.  The tax bracket for MFJ on capital gains for taxable income over $94,051 to $583,750.00 is 15%. 

You are right, the tax is imposed only on the capital gains you have accumulated through the year.

You can find more information at A Guide to the Capital Gains Tax Rate: Short-term vs. Long-term Capital Gains Taxes - https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-...

[Chslade]

Yes, if in 2024 and your taxable income is $94,050 for married filing joint. It would be at 0% capital gain rate.

[VolvoGirl]

But the capital gains are included in your AGI and Taxable income.   There are some recent posts about that.  I'll try to find them.  

[sbuissonllc]

were you able to locate any insight from other threads on this?

[VolvoGirl · Accepted solution]

So far I found...

The tax rate for qualified dividends and long-term capital gain is based on your total taxable income, including the capital gain. It's the taxable income on Form 1040 line 15.

See this discussion,
https://ttlc.intuit.com/community/after-you-file/discussion/capital-gain-tax-for-married-filing-join...

[sbuissonllc]

Ah, OK.  Thank you.  The answer from Opus17 in that thread was particularly thought provoking.  The mix of taxable income matters.  I was viewing capital gains as a separate calculation when in fact it is very much a part of the table.  I'm glad TT parses all of this out in the calculation.