TheyReadALot

TheyReadALot OP t1_j2f5p14 wrote

Thanks so much!

To clarify, is it the case that when calculating your total taxable income for capital gains tax rate calculations, you should do so *after* removing the standard deduction from your income?

To continue the example, if my income was $40,000 and the standard deduction is $12,950, I wouldn't actually pay any capital gains taxes until I earned >$14,626 in capital gains (which would make my income $54,626 - minus the deduction of 12,950 =$41,676 the capital gains income threshold).

Thank you again for your help!

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