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That makes a lot more sense to me. Thanks for the quick response as well.
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Hypothetically if your taxable income is below the $77,200 threshold and you sold $100,000 worth of long term stock your tax on that $100,000 would be zero. ( Is that correct, is the first question)

No, that's not correct. It's $77,200 of taxable income. That means that you need to account for at least the standard deduction of $24,000 for MFJ (since you asked about the $77,200 income). So, the limit is really $101,200 Then, any capital gains income over that amount is taxed at 15%. So if you had $77,200 in ordinary income, $100,000 in capital gains income and used the standard deduction, you would have $76,000 in capital gains that were above the 12% bracket and would be taxed at 15% Your tax would be $11,100

The second question is: if your taxable income went to $77,201 would your taxes on that $100,000 withdrawal become $15,000 ?

See the answer above.

AJ
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That makes a lot more sense to me. Thanks for the quick response as well.
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