Personal Finance (Not Investing) • Making sure I understand how capital gains are taxed

Yeah something still doesn't make sense to me, playing with a different set of numbers:

LTCG: $20K
Ordinary income: $40K (below $47,025)

LTCG are in the 0% tax bracket

LTCG: $20K
Ordinary income: $55K (above $47,025)

LTCG are split between 0% and 15%
How is the portion taxed at 0% determined?

then
LTCG: $20K
Ordinary income: $65K (above $47,025)

Now all LTCG is taxed at 15%? it's not a progressive system?

I am obviously missing something.

Statistics: Posted by Raspberry-503 — Mon Apr 01, 2024 12:56 pm — Replies 11 — Views 263

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