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In the long term capital gains tax brackets, I saw that the tax rate is zero percent for Singles up to 40K. So if I am single, and have capital gains under 40K, then I don't need to pay any taxes on that long term capital gains?

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So if I am single, and have capital gains under 40K, then I don't need to pay any taxes on that long term capital gains?

Only if that's your only taxable income. The brackets are based on your taxable income, not your long-term gains, so if you have other taxable income (including short-term gains) of $40k, and have $40k of LTCG, then your LTCG will be taxed at 15% (the single filer rate for income between $40K and $440k as of 2021), not 0%.

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  • So, I have to pay taxes on LTCG even though they are below 40K, when I have other income. Thanks
    – The Guest
    Aug 17 '21 at 15:01

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