By Dr. Jim Dahle, WCI Founder

I spend most of my time writing about the financial issues faced by high earners and the wealthy. Due to the severely progressive nature of our federal income tax system (where nearly half of “taxpayers” don’t actually pay federal income tax at all), some of the “right answers” for high earners are not right for those in lower tax brackets. The 0% long term capital gains (LTCG) bracket provides numerous examples of this phenomenon.

The 0% Long Term Capital Gains Bracket

Let’s say you have $10,000 in LTCGs. At what rate will it be taxed? That depends on how much other income you have. If you have no other income, those LTCGs are tax-free. You’re in the 0% LTCG tax bracket. How large is this tax bracket? For single people in 2024, it ranges from $0-$47,026, and for those filing Married Filing Jointly

Keep reading this article on The White Coat Investor.

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