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Where Taxpayers and Advisers Meet

Are Capital Gains able to shift a person's income tax bracket?

foxmccloud
Posts:25
Joined:Tue Apr 17, 2018 12:14 pm
Are Capital Gains able to shift a person's income tax bracket?

Postby foxmccloud » Wed Sep 26, 2018 1:49 pm

So if a person has 30k capital gains and they earn 30k from their job, will their income tax bracket be shifted to the higher bracket?

If it doesn't happen for the example above, can it happen for any amount of capital gains and income?

AGoodman
Posts:1751
Joined:Fri May 16, 2014 3:47 pm

Re: Are Capital Gains able to shift a person's income tax bracket?

Postby AGoodman » Wed Sep 26, 2018 2:30 pm

No, capital gains can't push income into a higher bracket as it is the other way around - the rate of capital gains tax depends on the amount of income.

For want of a better description, the gains sit on top of the income when allocating brackets.


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