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.

very good explanation, especially the stacking graph. I have heard of this, but never truly understood it, this was really helpful. Thank you!

The best explanation I found on YT. Thanks! I just subscribed.

Thankyou! For explaining this so clearly. Ive been going in circles trying to get a clear answer from google sources on this.

Really clear!

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.

I thought I understood income, standard deduction, LT capital gains calculations well. I was close, but missed a few key points. Thanks, very helpful.

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!

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.

Awesome video ... short and sweet. I am looking forward to see more video relate to Capital gains and IRMMA tax. Thanks

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!

You're right it is technical, but you did a great job simplifying it. Top notch presentation, Ted!

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?

great video! super useful illustrations

Nice job! Thank you!

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.

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%.

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.

Please do a 1040 with capital gains

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?

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.

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?

So do you tax your ordinary income, then tax your dividends and gains. Then add the two tax amounts to get your total tax?