Advertisement
investing

New Rules on Capital Gains

Rates didn’t change, but they’re pegged to your income instead of your tax bracket.

What are the long-term capital gains rates under the new tax law? - C.C., Williamsburg, Va.

The rates didn’t change, but they’re pegged to your income instead of your tax bracket. For 2018, you’ll pay 0% on long-term capital gains (investments held longer than a year) if your taxable income is below $38,600 for single filers, $51,700 for heads of household or $77,200 for joint filers. You’ll pay the 15% rate for taxable income up to $425,800 for singles, $452,400 for heads of household or $479,000 for joint filers. Above those income levels, the rate is 20%. You may owe state taxes, too, and high earners may also have a 3.8% net investment income tax, says Mark Luscombe of Wolters Kluwer Tax & Accounting.

Advertisement
Advertisement

Most Popular

18 Things You Can't Return to Amazon
Smart Buying

18 Things You Can't Return to Amazon

Before tossing these items into your virtual shopping cart, be sure to read Amazon's return policy first.
September 17, 2020
Insurance for Long-Term Care at Home
retirement

Insurance for Long-Term Care at Home

In the wake of COVID-wracked nursing homes, increasingly more people are looking at options to age in place with long-term care insurance.
September 17, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020

Recommended

Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
Most-Overlooked Tax Breaks for the Newly Divorced
tax deductions

Most-Overlooked Tax Breaks for the Newly Divorced

Filing taxes after a divorce can add yet another problem to an already long list of challenges. But here are some tips to make your return to single l…
September 18, 2020
What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
September 17, 2020
When Are 2020 Estimated Tax Payments Due?
tax deadline

When Are 2020 Estimated Tax Payments Due?

If you're self-employed or don't have taxes withheld from other sources of taxable income, it's up to you to periodically pay the IRS by making estima…
September 11, 2020