NEW! - Can Capital Gains Push Me Into a Higher Tax Bracket?

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  • Опубліковано 22 гру 2024

КОМЕНТАРІ • 318

  • @TedErhartCFP
    @TedErhartCFP  Місяць тому +7

    Check out the related video 👉 How capital gains affect taxes on Social Security: ua-cam.com/video/X2K9E4tKrfQ/v-deo.htmlsi=Ay9Rg0TlJ79eqVTC

    • @devisubramaniam3860
      @devisubramaniam3860 Місяць тому +1

      Thank you, my mother a recent widow was surprised on her tax bill, and I can understand why now, in addition to the standard deductions.. She has an accountant who does her taxes, so she is paying the correct amount, just that her bill was a surprise.

  • @bill7320
    @bill7320 4 місяці тому +88

    Add me to the list of people saying that this is the clearest explanation on UA-cam! Presenting ordinary income and capital gains side-by-side made it easy to follow. I also appreciated the detailed presentation of how the long-term capital gains stack on top of ordinary income.
    Actually, both qualified dividends and long-term capital gains stack on top of ordinary income, but I recognize that you might confuse part of your audience by trying to clarify that.
    My only disappointment was noticing that only 4,700 people viewed the video. You deserve a much wider audience! Liked and subscribed.

    • @TedErhartCFP
      @TedErhartCFP  4 місяці тому +3

      Really glad it was helpful and I appreciate the nice comment! 😀

    • @Thesakuraharona
      @Thesakuraharona 2 місяці тому +2

      I really needed this video since I am starting my own financial education into investments. Clarified my confusion nicely

    • @mikeymike202
      @mikeymike202 Місяць тому +3

      The two graphics showing how ordinary is first and LT gain is ON TOP OF ordinary combined with the LT floor and blended rates are golden! It's very tedious to go through that on my turbotax worksheet. Thanks for explaining this is the perfect level of detail.

    • @glendavis1266
      @glendavis1266 29 днів тому

      ⁠@@mikeymike202totally agree with Bill 7360…what ever number!

  • @kansaidan2302
    @kansaidan2302 9 місяців тому +37

    You're a great teacher! I will be subject to Capital Gains soon and it's good to know exactly how they work. Will help me to calculate how much I can SELL. I'm also a retiree, so I need to keep Social Security and IRMAA in mind. At least if I seek out a TAX professional I'll be somewhat informed. Thank you!

    • @TedErhartCFP
      @TedErhartCFP  9 місяців тому +2

      Glad it was helpful!

    • @Travlinmo
      @Travlinmo 2 місяці тому +2

      Agree, great video. My remaining question (and something I haven’t googled!) is for large sales of stocks, should I be doing an estimated tax to the IRS at time of sale? (I have never sold meaningful $ after tax)

    • @SicilyJo
      @SicilyJo 29 днів тому +1

      @@TravlinmoAs you earn income in your taxable accounts, the IRS wants your tax money.

    • @charlielipthratt7291
      @charlielipthratt7291 21 день тому

      ​@@Travlinmo - depending on your broker, they can take the tax out for you and save you the hassle of filing quarterly estimated taxes.

  • @RBart-os6sy
    @RBart-os6sy 8 місяців тому +40

    The best explanation I found on YT. Thanks! I just subscribed.

  • @DADVICETV
    @DADVICETV 2 місяці тому +8

    By far the best explanation of this I have ever seen!

  • @stephenvivien4197
    @stephenvivien4197 Місяць тому +4

    THANK YOU. Been trying to figure this out for 5 years, accountant could not explain it, YOU DID ! Thank you.

  • @wrobinnes
    @wrobinnes 2 місяці тому +3

    I actually recreated the 1040 including that line 16 worksheet in Excel to figure out how my capital gains and regular income is taxed - I reverse engineered it - and figured out much of what you presented here, but your explanation still clarified a lot. Thanks!
    We’re still in our 50s, and my strategy is to realize as much capital gains as I can each year, while remaining in that 0% bucket.

  • @mhub3576
    @mhub3576 9 місяців тому +13

    You're right it is technical, but you did a great job simplifying it. Top notch presentation, Ted!

  • @TerryStoa
    @TerryStoa Місяць тому +3

    Terrific explanations. I’ve been good at tax PREPARATION, but am just recently learning the value of tax PLANNING.

  • @BuziDJ
    @BuziDJ Місяць тому +3

    Best video by putting the two tax rates side by side and explain how they work! Thank you for the clarity!

  • @andrehorochiwsky3627
    @andrehorochiwsky3627 9 місяців тому +15

    I thought I understood income, standard deduction, LT capital gains calculations well.
    I was close, but missed a few key points.
    Thanks, very helpful.

  • @notyetjp
    @notyetjp 2 місяці тому +2

    Being a great TEACHER is completely separate from being a financial expert. I finally understand this clearly! Your charts are the best on YT. Stellar work.

  • @cq7415
    @cq7415 2 місяці тому +2

    Very good. I was wrong in thinking that the capital gains were taxed differently until he explained it clearly with his illustrations. Now I understand. Thank you for sharing.

  • @freecycling6687
    @freecycling6687 2 місяці тому +2

    Ditto everyone else! This was a clear concise explanation of this topic, which I've never quite understood (what with using Turbo Tax, which doesn't really explain anything it's doing.) But within 10 minutes you explained this in a way that was easy to understand and to remember.

  • @MichaelSmith-if2rs
    @MichaelSmith-if2rs 4 місяці тому +7

    very good explanation, especially the stacking graph. I have heard of this, but never truly understood it, this was really helpful. Thank you!

  • @PhilSallaway
    @PhilSallaway 3 місяці тому +3

    I have had many "Experts" explain this and it was clear as mud. Your explanation and Charts are Super Clear and to the point Thanks Great Job.

  • @DunRovinRanch-1969
    @DunRovinRanch-1969 28 днів тому +1

    The way you explained this and your charts made it very clear and understandable. An IRMAA threshold would be even better.

  • @robannmateja5000
    @robannmateja5000 3 місяці тому +4

    This was the best discussion of this topic that I've seen (and I've watched and read about this extensively). Thank you so much!

  • @johndherman75
    @johndherman75 Місяць тому +2

    Excellent presentation! The charts helped me finally to understand how capital gains get stacked on top of ordinary income...after 40 some years of filing taxes! Thanks!

    • @wren6o
      @wren6o Місяць тому

      I agree. 👍

  • @tomn5413
    @tomn5413 5 місяців тому +7

    Awesome video ... short and sweet. I am looking forward to see more video relate to Capital gains and IRMMA tax. Thanks

    • @michaelshultz9923
      @michaelshultz9923 2 місяці тому

      ua-cam.com/video/Ai4AKkHbyTA/v-deo.html. Mr. Erhart also points out that tax-exempt income is included in the IRMAA surcharge.

  • @Jupiterplus
    @Jupiterplus Місяць тому +2

    This is the best video that I have seen explaining the correlation between ordinary income/capital gains and how they influence each👍👍 Very nice and educational! Going to share it with my friends.😊

  • @teddybean9948
    @teddybean9948 3 місяці тому +4

    Best explanation of taxable incomes for salary and capital gains. You convinced me to hit that subscribed button.

  • @davidstoken9208
    @davidstoken9208 29 днів тому +1

    I’ve watched a lot of UA-cam videos on this subject, and this is the best explanation that I have seen. Thank you.

  • @skyak4493
    @skyak4493 Місяць тому +1

    THANK YOU! This is exactly the questions and answers I need. I have been harvesting LT cap losses so long that now I only have a few years to harvest gains before pension, SS, and RMDs kick in and raise my bracket.

  • @Brian-Gigi
    @Brian-Gigi Місяць тому +3

    That was awesome Ted! Simple and clear, thank you!

  • @lpac8272
    @lpac8272 2 місяці тому +1

    Super helpful, planning on retiring at 52 using my RSUs to fund my retirement until I can draw from 401k. I had some holes in my understanding of how the LT capital gains was taxed and your charts and explanation filled those holes. Thanks!

  • @boatsie
    @boatsie 6 місяців тому +4

    I watched LOTS of videos about this subject and always came away feeling I was missing something. This was the first video that cleared up a lot of my questions & concerns about this subject. Thank you so much for your time & effort…I now understand 👍
    Qualified dividends also fall into that ”Capitol Gains” bracket bucket as well…right?

  • @michaelgreskamp1093
    @michaelgreskamp1093 5 місяців тому +3

    Ted - First time I caught one of your videos. Well done laying out the camptal gains brackets. I was able to jetason some stock options over the years at 0% when I retired at 60 ten yerears ago. Frankly - I educated myself and qualified for the 0% bracket keeping my totals under the IRMAA threshold. Again - excellent presentation!

    • @TedErhartCFP
      @TedErhartCFP  4 місяці тому

      Awesome! Glad the video was helful. 😀

  • @timw491
    @timw491 3 місяці тому +2

    Thanks - that was very helpful. The examples with charts helped tremendously. Previously could not understand what others meant by gains being "stacked on top". Would really appreciate it if you would do another similar episode on qualified, non-qualified dividends, and interest income and its effect on tax brackets. I think I know the answer from watching this, but confirmation would really be helpful. Thanks very much for your efforts.

  • @williamthone9678
    @williamthone9678 6 місяців тому +6

    Really clear!

  • @kineticU
    @kineticU 2 місяці тому +3

    Very well presented. Concise and clear. Thank you

  • @ramblingGuy
    @ramblingGuy 2 місяці тому +1

    Thank you! This is the first explanation that actually makes sense. That tax rate stacking visual really helped!

  • @Random-ld6wg
    @Random-ld6wg 3 місяці тому +2

    i have explained this to my wife every time i do a quarterly estimated tax payment but your nice side by side chart hopefully makes it easy for her to understand. in early retirement my "income" subject to marignal rates is only from roth conversions and we live off liquidations from my taxable brokerage. i was planning on buying some rectangular magnets of different colors to use on a whiteboard along with the different tax brackets to show how the income stacking is in our particular situtaion.

  • @georgestreng
    @georgestreng 3 місяці тому +2

    You made that perfectly clear.

  • @itchyisvegeta
    @itchyisvegeta 3 місяці тому +1

    Im in my 40s, not even retired yet, and this is one of the best videos ive seen explaining this stuff.

  • @unearnedinc
    @unearnedinc 2 місяці тому +1

    If you don’t ever make another video you’ve still gained a new subscriber. Great explanation.

  • @Mark-ow6xr
    @Mark-ow6xr 3 місяці тому +2

    You did an Amazing job of explaining taxation and the different income buckets. Because of your clear explanation I am going to change my 3 different accounts around to take advantage of the taxes (asset location). Thank you for your expertise.

  • @jamesbennett5421
    @jamesbennett5421 3 місяці тому +2

    Very helpful… thanks. And here I was excited that the first 90K of gains wasn’t taxable, but you need 0 ordinary income for that to be true. :(

    • @TedErhartCFP
      @TedErhartCFP  2 місяці тому +1

      Don't forget about your standard deduction. Basically as long as your other sources of income are equal to, or below your standard deduction (or itemized deductions), you can maximize the 0% long-term capital gain bracket. I've got another video in the works on this.

  • @satchitbliss5411
    @satchitbliss5411 2 місяці тому +1

    Most useful information relevant to my life I found on UA-cam. The way you explained cannot be any better. My respectful sincere thanks.

  • @gemmaanderson4430
    @gemmaanderson4430 4 місяці тому +2

    Thankyou! For explaining this so clearly. Ive been going in circles trying to get a clear answer from google sources on this.

  • @javanparx6626
    @javanparx6626 Місяць тому +1

    Thanks for the info! Taking on the CFP in 2025 and your channel has some great simplified content for me to go over. Appreciate your time and effort!

  • @weldo1948
    @weldo1948 2 місяці тому +1

    Excellent presentation. Clarity is great, especially for us older folks already retired and on Medicaid.

  • @DSC800
    @DSC800 10 днів тому

    Best explaination I've seen on the subject of how earned income and interest can reduce the "zero bracket" on dividends and LTCG. I stumbled on this while looking at other tax situations.
    Another topic worthy of explaination is the "Inflation Reduction Act" limiting Health Insurance premiums to 8.5% of ALL income. A good strategy is to minimize or postpone income through 2025 since 8.5% on top of State and Federal taxes is a pretty heavy hit. Here in CA my upper bracket is 9.3%, 12%(Fed),8.5%(APTC) totaling 31%. The same income for 2026 would be only 22.5%.

  • @paulholt2317
    @paulholt2317 13 днів тому

    The "ordering rules" convention is one of the most confusing, convoluted and non-intuitive in all the tax code. This is a great explanation of what's going on. Thank you! By the way, it's just another way Congress "means-tests" your tax bill.

  • @hm51008
    @hm51008 3 місяці тому +2

    Outstanding presentation… the best example I have seen yet on UA-cam.

  • @Sam-tg4ii
    @Sam-tg4ii 3 місяці тому +1

    7:36 awesome visualization and very clear. Thank you

  • @FlyingTabla
    @FlyingTabla 20 днів тому

    Finally, the clearest explanation of the interplay between ordinary income and capital gains. Thank you 🙏. Closing with an enhanced example showing both income and capital gains straddling brackets was super helpful.

  • @mrprfct7069
    @mrprfct7069 2 місяці тому +1

    Best video showing capital gains breakdown

  • @SurfCityBill
    @SurfCityBill 2 місяці тому +1

    Very well done. This is going to help me next year. I plan to sell stock with a zero cost basis and my plan is to be in the 0% cap gains rate range.

  • @mikeamato2830
    @mikeamato2830 Місяць тому +1

    Finally, someone clarifies this for me. Thank you so much!! Subscribed!

  • @nadmeldev
    @nadmeldev Місяць тому +1

    Hands down best video I have ever watched explaining these numbers. I'm a fan! Thank you Sir!

  • @todddunn945
    @todddunn945 3 місяці тому +1

    Good explanation and nice to see someone actually show the capitol gains and qualified dividends worksheet.

  • @driveamericanroads7491
    @driveamericanroads7491 3 місяці тому +3

    Excellent review of a complex topic

  • @mikeg9b
    @mikeg9b 4 місяці тому +1

    Thank you for the very clear explanation. I've been adding to my mutual fund positions for 20+ years, but have never sold until this week. Now I have a better idea of what to expect when I filed my tax return next April.

  • @RamTrucks590
    @RamTrucks590 3 місяці тому +1

    Great job explaining this. I'm getting ready to retire in five years and believe tax planning is just as important as investing.

    • @TedErhartCFP
      @TedErhartCFP  3 місяці тому

      I would agree. With investing, chance plays a major role. By contrast, retirees can often be very strategic with the amount of income that hits their tax return.

  • @MyWasteOfTime
    @MyWasteOfTime 2 місяці тому +2

    How is LTCG affected with SS income?

  • @mylifeonthebeach
    @mylifeonthebeach 2 місяці тому +1

    Very good explanation of the topic and presented clearly!

  • @zeitgeist888
    @zeitgeist888 2 місяці тому +1

    Super informative and concise with great real world examples. Thank you

  • @chenmwu
    @chenmwu 6 днів тому

    Great video. Subscribed. No fluff just great content. Seeing the stacking and ordering visually makes it so much easier to understand. Thank you!

  • @jason9787
    @jason9787 Місяць тому +1

    Just subscribed! It was not only just clear, but was well story boarded!!

  • @SRTendulkar999
    @SRTendulkar999 Місяць тому +1

    Nice video. Finally I get the concept. Thanks

  • @fialee8ca132
    @fialee8ca132 Місяць тому +1

    Nice summary and visuals!

  • @Rajulio78
    @Rajulio78 Місяць тому +1

    Well done, sir!👏👏👏

  • @lancepayne7528
    @lancepayne7528 2 місяці тому +1

    All of your information is VERY HELPFUL !!!! Thank you!!!!

  • @chiuhuili293
    @chiuhuili293 Місяць тому +1

    Excellent and clear explanation! Thank you so much.

  • @Satjr35031
    @Satjr35031 2 місяці тому +1

    Well explained. Just keep it simple to get your point across.

  • @LiveWithStocks
    @LiveWithStocks Місяць тому +1

    Great contents!! Thank you for delivering the point easily. It looks quite basic but I didn’t have a good insight before.

  • @michaelnoonan7832
    @michaelnoonan7832 3 місяці тому +1

    This is the easiest to understand explanation i have seen. Thank you

  • @philyogaeveryday321
    @philyogaeveryday321 2 місяці тому +1

    Brilliant! This is very helpful. Thanks.

  • @boomergames8094
    @boomergames8094 2 місяці тому +1

    Thank you. This chart/graph is really, really helpful.

  • @devisubramaniam3860
    @devisubramaniam3860 Місяць тому +1

    Thank you so much, the bar charts made it so clear. I just subscribed.

  • @DinoTamer23
    @DinoTamer23 2 місяці тому +1

    Thanks for video. Would love to see a similar one on short term capital gains

    • @notyetjp
      @notyetjp 2 місяці тому

      Short term gains are all taxed as ordinary income up thru your brackets. It can get brutal if you are really "lucky".

  • @DJwCW
    @DJwCW 2 місяці тому +1

    Learn something new today, thank you!

  • @11rammi
    @11rammi Місяць тому +1

    Excellent video, you made the complex stuff so simple ❤

  • @CrystalConsults
    @CrystalConsults 2 місяці тому +1

    Very well explained! Love the viz aids. 👍

  • @macroberlitz
    @macroberlitz 3 місяці тому +1

    Very helpful video - thank you for addressing this confusing topic with such clarity

  • @jian-pingshen4001
    @jian-pingshen4001 14 днів тому

    That’s the best explanation so far among those l have watched on UA-cam, one of your standing out from others is your neat figures/examples. Great job Ted

  • @RP-16
    @RP-16 Місяць тому +5

    The more I learn about taxes the more I realize our taxes are actually kinda low. Atleast for people with large investing accounts

    • @antilogism
      @antilogism 26 днів тому

      Especialy if your income is low. If one is well-to-do, saving $13k on cap gains tax is peanuts but it's big money to my familly. Not unlike the nearly $3k tax savings we get on the std. deduction. Effectively our family tax rate is only about 3%, with the CTC (in a sense, another $20k deduction). Now if you're in coastal California the middle-class gets fleeced since many are making $150k and up. The tax curve is steep, brutal.

  • @jerryhablitzel6676
    @jerryhablitzel6676 29 днів тому +1

    Very clearly presented!

  • @johnyang962
    @johnyang962 3 місяці тому +1

    Thank you for the clear explanations, this is the best explanations I've ever seen for this confusing but important tax topic for everyone.

  • @MICHAELCARACAPPAJR
    @MICHAELCARACAPPAJR 2 місяці тому +1

    This IS the explanation I’ve been looking for!! THANK YOU!

  • @davidolee1
    @davidolee1 2 місяці тому +1

    Well explained and very clear illustrations. Thanks.

  • @dancarney106
    @dancarney106 2 місяці тому +1

    Great graphics. You stayed on point. I was attentive. I subscribed. Thank you.

  • @JP-xr9qg
    @JP-xr9qg 9 днів тому

    Great information, thank you for all the graphs to break down the tax rates.

  • @pagosabob10
    @pagosabob10 2 місяці тому +1

    Good reminders! Thx!

  • @neilgriffin880
    @neilgriffin880 2 місяці тому +1

    Excellent video. Thanks!

  • @joy2world97
    @joy2world97 3 місяці тому +1

    It would be nice if you can do another demo video for social security on top of the current capital gain.

  • @KhemistryIBMOR
    @KhemistryIBMOR Місяць тому +1

    Great video!
    Thank you for the instruction!

  • @mikeho1871
    @mikeho1871 Місяць тому +1

    Best video!! Clear explanation thank you so much. Subscribe immediately

  • @fuz4623
    @fuz4623 3 місяці тому +1

    Great presentation w/ useful illustrations

  • @ykc6006
    @ykc6006 Місяць тому +1

    Great video! Amazing teacher! Can you please do another example adding dividend income? Thank you!

  • @ReesRetuta
    @ReesRetuta 7 місяців тому +2

    great video! super useful illustrations

  • @denwoz7788
    @denwoz7788 3 місяці тому +1

    Fantastic explanation! Thank you for helping me understand this better.

  • @adamfrost9048
    @adamfrost9048 2 місяці тому +1

    Really great explanation that makes everything crystal clear.

  • @shablinsky3277
    @shablinsky3277 2 місяці тому +1

    This was very helpful, thanks Ted. I plan to liquidate securities to buy retirement real estate, and will take considerable capital gains in the process. Now I know how to roughly estimate the tax impact. Liked and subscribed.

  • @CrabbyE8
    @CrabbyE8 2 місяці тому +1

    This is great stuff! I have been looking for this exact explanation. 🎉

  • @samkapoor3441
    @samkapoor3441 3 місяці тому

    Great points. In the same vain, one can become ineligible for IRA contribution as long term capital gains can put one over the MAGI limit of IRA contributions. Like you said, many people find this out only when they are ready to file taxes and then they have to request return of those contributions in time. Otherwise there is a 6% penalty each year on excess contributions.

  • @terryy6938
    @terryy6938 3 місяці тому +1

    Best explanation I have seen. Thank you.

  • @kerripace
    @kerripace 7 місяців тому +4

    Nice job! Thank you!

  • @michaelbetanzos6172
    @michaelbetanzos6172 Місяць тому +1

    very helpful - thank you! New subscriber