Timeline for How do taxes work when your only income is from capital gains?
Current License: CC BY-SA 3.0
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| Feb 14, 2015 at 1:41 | vote | accept | CommunityBot | ||
| Jan 17, 2015 at 0:58 | comment | added | dave_thompson_085 | Also if your income was all (or mostly) non-payroll without withholding, and you didn't estimate your taxes well enough to make at least nearly correct estimated payments throughout last year, you are likely to owe a significant penalty, unless an exception applies. See form 2210 and instructions. Or as noted use one of the popular software packages, they figure this automatically. | |
| Jan 17, 2015 at 0:52 | comment | added | dave_thompson_085 | That's not really true. Capital gains are added into AGI, and thereby Gross Income and Taxable Income. But the tax computation separates out longterm cap gain (net of shortterm cap loss), and also qualified dividends, and applies preferential rates to them, and ordinary rates and brackets only to other taxable income. In the 2014 general instructions see line 44 on page 41, page 43, and in more complex cases the Schedule D instructions at pages D-15 and D-16. | |
| Jan 9, 2015 at 23:55 | comment | added | littleadv | This is called "AGI" - adjusted gross income. It affects many things, not just the rate brackets. For example, some deductions phase out at certain AGI levels, AMT is affected, etc etc. | |
| Jan 9, 2015 at 23:33 | history | answered | user19035 | CC BY-SA 3.0 |