Hello, Community - I hope you are doing well.
Multiple sources say that "taxable income" establishes a tax bracket. However, taxable income includes long-term capital gains (taxed at a lower rate). For example, a person earns $40k and has a standard deduction. But he/she has a $700k LT capital gain. Does it mean his/her tax bracket is 37%?
I miss something important here and hope someone can help me understand (a simple example would be best).
Multiple sources say that "taxable income" establishes a tax bracket. However, taxable income includes long-term capital gains (taxed at a lower rate). For example, a person earns $40k and has a standard deduction. But he/she has a $700k LT capital gain. Does it mean his/her tax bracket is 37%?
I miss something important here and hope someone can help me understand (a simple example would be best).
Statistics: Posted by mander75 — Tue Mar 05, 2024 10:03 pm — Replies 3 — Views 373