mutual fund capital gains
do capital gains go under your gross income or are they paid at the rate of capital gains and do not show up under income?
Thank you,
Douglas
do capital gains go under your gross income or are they paid at the rate of capital gains and do not show up under income?
Thank you,
Douglas
Permalink Submitted by Alan Spross on Tue, 2008-09-09 23:45
They are part of your AGI, even for the next two years when lower bracket taxpayers have a -0- bracket on LONG TERM gains and qualified dividends. Therefore, even though some people will owe no tax on the gains themselves, including them in AGI can result in more SS income becoming taxable as well as reduced itemized deductions that have a % of AGI floor (such as Medical and certain Misc deductions).
Most states also tax these items at the same rate as ordinary income.
Cap gains show on line 13 of Form 1040.