I have been told that a capital gain will not increase my tax bracket or the amount I owe on my regular income. Is this true? I have used a couple of 1040 calculators that I have found online and it seems like it does increase the tax on my regular income.
Example: 185,000 income with a couple dependents and some itemized deductions shows a federal tax of 30,000. If I add 185,000 long term capital gain to the calculator my federal tax goes to 66,000. I believe my capital gain should be 15% of 185,000 which is about 28,000 and that would make my total tax 58,000 instead of 66,000. What am I doing wrong?
Example: 185,000 income with a couple dependents and some itemized deductions shows a federal tax of 30,000. If I add 185,000 long term capital gain to the calculator my federal tax goes to 66,000. I believe my capital gain should be 15% of 185,000 which is about 28,000 and that would make my total tax 58,000 instead of 66,000. What am I doing wrong?