Add me to the list of people saying that this is the clearest explanation on KZfaq! Presenting ordinary income and capital gains side-by-side made it easy to follow. I also appreciated the detailed presentation of how the long-term capital gains stack on top of ordinary income. Actually, both qualified dividends and long-term capital gains stack on top of ordinary income, but I recognize that you might confuse part of your audience by trying to clarify that. My only disappointment was noticing that only 4,700 people viewed the video. You deserve a much wider audience! Liked and subscribed.
@TedErhartCFP25 күн бұрын
Really glad it was helpful and I appreciate the nice comment! 😀
@MichaelSmith-if2rs3 күн бұрын
very good explanation, especially the stacking graph. I have heard of this, but never truly understood it, this was really helpful. Thank you!
@RBart-os6sy4 ай бұрын
The best explanation I found on YT. Thanks! I just subscribed.
@gemmaanderson44302 күн бұрын
Thankyou! For explaining this so clearly. Ive been going in circles trying to get a clear answer from google sources on this.
@williamthone96782 ай бұрын
Really clear!
@keithmachado-pp6fv12 күн бұрын
Good video. Cap gains can’t put your ordinary income into a higher bracket but they can trigger the 3.8% surtax, make more SS taxable, or put you into IRMAA surcharges.
@andrehorochiwsky36275 ай бұрын
I thought I understood income, standard deduction, LT capital gains calculations well. I was close, but missed a few key points. Thanks, very helpful.
@kansaidan23025 ай бұрын
You're a great teacher! I will be subject to Capital Gains soon and it's good to know exactly how they work. Will help me to calculate how much I can SELL. I'm also a retiree, so I need to keep Social Security and IRMAA in mind. At least if I seek out a TAX professional I'll be somewhat informed. Thank you!
@TedErhartCFP5 ай бұрын
Glad it was helpful!
@mikeg9b8 күн бұрын
Thank you for the very clear explanation. I've been adding to my mutual fund positions for 20+ years, but have never sold until this week. Now I have a better idea of what to expect when I filed my tax return next April.
@tomn5413Ай бұрын
Awesome video ... short and sweet. I am looking forward to see more video relate to Capital gains and IRMMA tax. Thanks
@michaelgreskamp1093Ай бұрын
Ted - First time I caught one of your videos. Well done laying out the camptal gains brackets. I was able to jetason some stock options over the years at 0% when I retired at 60 ten yerears ago. Frankly - I educated myself and qualified for the 0% bracket keeping my totals under the IRMAA threshold. Again - excellent presentation!
@TedErhartCFP25 күн бұрын
Awesome! Glad the video was helful. 😀
@mhub35765 ай бұрын
You're right it is technical, but you did a great job simplifying it. Top notch presentation, Ted!
@TedErhartCFP5 ай бұрын
I appreciate that!
@boatsie2 ай бұрын
I watched LOTS of videos about this subject and always came away feeling I was missing something. This was the first video that cleared up a lot of my questions & concerns about this subject. Thank you so much for your time & effort…I now understand 👍 Qualified dividends also fall into that ”Capitol Gains” bracket bucket as well…right?
@ReesRetuta3 ай бұрын
great video! super useful illustrations
@kerripace3 ай бұрын
Nice job! Thank you!
@keithmachado-pp6fv3 ай бұрын
One item that caught me off guard this year. I always take the $3k cap loss against ordinary income but this year I have some unexpected cap gains and now the $3k loss will go against my cap gains in the zero percent bracket, effectively making $3k more of my overall income taxable than had it offset ordinary income.
@keithmachado-pp6fv3 ай бұрын
The opposite happens when more ordinary income can add more tax to cap gains. For example if you are at the top of the 12% bracket and get another $100, you will pay 22% on that income and another 15% on $100 of capital gain that would have otherwise not been taxed, effectively going from 12% to 37%.
@jplin3933Ай бұрын
Great video and very helpful, thanks! Unable to understand and find where the info is located in tax form, please elaborate a little more if possible.
@TedErhartCFP25 күн бұрын
Some preparers don't include the worksheet in the return. It can be found in the Instructions for Schedule D. Here's the link for 2023: www.irs.gov/pub/irs-pdf/i1040sd.pdf.
@sarahthomas2303Ай бұрын
Please do a 1040 with capital gains
@bobyrd743 ай бұрын
Great stuff here, I searched on google for this exact thing, that was useless, on YT your video was first!! For these examples, if instead of ordinary income, instead there was IRA distributions along with the LTCG, does anything change?
@TotalReturnsАй бұрын
IRA distributions as well as Roth conversions are part of your ordinary income bucket.
@gchow60095 ай бұрын
Here’s a case for you : married file joint with a dependent under 18. One spouse is 60 and the other 51. Their itemized deductions is 35k. Also continue to contribute to the younger spouse IRA. Main source of income will be long term capital gain. The plan is to live off from capital gain no other income and convert some of the older spouse’s IRA to Roth. They don’t plan to file SS until 68 or 70. How much should they convert IRA to Roth each year approximately to maximize the zero tax bracket of capital gain? Is 40K-50K conversion a year a good number? Thank you for your expertise and thank you for this video. It’s helpful.
@TedErhartCFP5 ай бұрын
Speaking hypothetically, if this were my situation, I would want to convert an amount rough equal to my deductions. Then I'd pay no federal income tax on either the conversion or the capital gain.
@gchow60095 ай бұрын
@@TedErhartCFP Thank you for your quick response. You have confirmed the plan I am thinking.
@russellheath841525 күн бұрын
At 11:20 you say that taking a capital gains would make all of my SS taxable--but I'm not clear why. Isn't SS taxed in the same way as ordinary income? Thus it is taxed first at the lowest tax bracket and my capital gains are taxed next?
@TedErhartCFP25 күн бұрын
This has to do with the funky way Social Security is taxed. If your income is low enough, you pay no federal income tax on Social Security benefits. But as your income goes up, Social Security starts getting taxed. And capital gains count as income in the provisional income calculation. Therefore, capital gains can result in Social Security benefits being taxed that otherwise wouldn't have.
@sarahthomas2303Ай бұрын
So do you tax your ordinary income, then tax your dividends and gains. Then add the two tax amounts to get your total tax?
@derMikester5 күн бұрын
Yep. That’s correct. Note dividends must be qualified dividends. Ordinary dividends are taxed as ordinary income