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Currently I'm on the upper end of the 0% capital gains tax bracket.

In 2023 I made $3K from interest, $3K from dividends, and $37K from long-term capital gains (no other income).

When I calculate my taxes by hand, I get $30K taxable income after the standard deduction. Using the schedule D tax worksheet to figure my tax owed, I get about $3K owed.

In other works, capital gains are acting somewhat like regular income.

This doesn't match what I hear is a "0% capital gains rate" online. Am I figuring my tax wrong? Is this the right answer?

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  • irs.gov/taxtopics/….
    – keshlam
    Commented Feb 16 at 0:05
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    "Am I figuring my tax wrong? ". Yes, you do. But without you showing us your calculation we can't tell where the problem is.
    – Hilmar
    Commented Feb 16 at 1:51

2 Answers 2

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I filled the numbers exactly as you described in the tax program and it showed up as $0 in taxes. Check your numbers again, you messed something up somewhere.

You should be getting $29,150 as taxable income after standard deduction, and $0 in taxes.

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Capital gains tax is 0% if your net income is below $44,625 (filing single). You should have no tax liability this year since you said the capital gains were your only income and all of it was below that amount (it adds up to around $41,000).

You may have other tax liabilities depending on whether those capital gains came from tax-advantaged accounts like retirement funds, if you have RMDs, or other details not related to your investments.

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