How much will I owe in capital gains? I am in 33% tax bracket filing married jointly. Profit is around $250k. =====> Then you need to pay 15% of CG tax on your LTCG. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25-, 28-, 33-, or 35- percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket for ordinary income, the rate is 20 percent.
Looks like capital gain and state tax (Colorado) plus Medicare tax will add up to around %25. So my question is does the capital gain amount minus the 25% get added to my taxable income and put me into a higher 35% tax bracket.=====>you need to file sch D of 1040 and report the CG on your 1040 line 13 and go over Sch D of 1040 and need to complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44. Your CG are added to your income for the purpose of determining your tax bracket. The capital gain pushes you into the higher tax bracketYou need to check your state taxes on your LTCG with the dept of revenue of CO state;if you are a self employer, then you do not pay any self employment taxes( I mean self employer?s medicare taxes) on your CG; However, if your self-employment income is less than $400 for the year, you don't need to pay self-employment taxes.When you work as an employee, your employer withholds the employee portion of your Federal Insurance Contributions Act taxes -- the Medicare and Social Security taxes -- from your pay, and pays the rest herself.