What is the long term capital gains bracket of 0% for single individuals? Most websites I see say that taxable income under $40K is the 0% tax bracket but an IRS Tax topic I came across confused me:
https://www.irs.gov/taxtopics/tc409
Capital Gain Tax Rates
The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.
A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450 for single; $496,600 for married filing jointly or qualifying widow(er); $469,050 for head of household, or $248,300 for married filing separately.
My interpretation of this is that 0% capital gains tax rate applies to taxable income less than $80k for single filers rather than $40k that I mentioned in the beginning.
Reference to websites showing 0% tax bracket is for taxable income less than $40k:
https://taxfoundation.org/2021-tax-brackets/
https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates
Submitted June 05, 2021 at 02:51AM by FerrousMan https://ift.tt/3clpiod
