Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
AJ writes:

"...given that in 2021 for MFJ who are both over 65, there is a $27,700 standard deduction, it's actually quite likely that you would still be in the 0% LTCG bracket. 85% of your SS income would be taxable, so that's $20,400 of taxable income."

I think that first calculation is off. The SS income is $40,000. 85% of SS income would be $34,000 in taxable income.

So after applying the $27,700 standard deduction, you would have $6,300 in taxable income based on SS. To remain in the 0% capital gains bracket, you could have up to $74,500 in capital gains ($80,800 - 6,300 = $74,500). Not quite as much per AJ's calc, but as pointed out, still plenty of buffer for your anticipated $60,000 cap gains sale to fall with in the 0% cap gains bracket.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.