The capital gains tax requires you to do a calculation on you taxable income. You get this number by subtracting the standard or itemized deductions that are greater from your adjusted gross income. You might be able to qualify for a 0% long term capital gains rate if you are a single filer with an income of $40,400 or less, or a married couple with an income of $80,800 or less. You also can lower you taxable income by depositing money into a health savings account or an IRA.
- You would need to make 40,400 or less as a single filer or 80,800 as a married couple to qualify for 0% capital gains long term.
- The way you get your taxable income is by subtracting the standard or itemized deduction that is higher from your adjusted gross income.
- When you make contributions to an IRA or deposit money to a health savings account you help lower your taxable income.
“And the threshold for the 0% capital gains rate is even higher — with possible joint six-figure gross earnings — if you’re filing taxes with a spouse.”
Read more: https://www.cnbc.com/2022/02/08/heres-how-much-you-can-make-and-still-pay-0percent-in-capital-gains-taxes.html