No Tax Calculating

Forum|Forum|3 months ago
March 11, 2026
1 reply
6 views

I've got a 70 year old retiree with $38,691 in capital gains, interest & dividends. After $17,750 in standard deduction and $6,000 in additional deduction, taxable income is $14,941. The Tax calculated = $0

What am I missing?

ProSeries Basic

BobKamman

Level 15

The legislation from -- was it the last decade? -- that set a zero tax bracket for LTCG and QD, up to a certain point.

CAPCPAAuthor

Level 2

Wow, you never stop learning ...... never had a client with income that low, so never ran into a zero bracket. Thanks.

F

Frustrated-in-IL

Level 8

That was young George Bush who did that. Announced on TV that he was reducing the capital gain rate to 15%, and for those otherwise in the 15% bracket, the rate would be 0%.

The day Bush announced that was the day I realized there was fake news. All the talking heads could say was it was a giveaway to the rich and skewered him. Never once did I hear them say a word about the 0% rate. Over the past couple decades, I have had countless clients benefit from this, including one who just could not believe he did not have to pay a penny on his big capital gain. After I told him why he did not have to pay a penny, all he did was sit in the office shaking his head and repeating "George Bush did this, George Bush did this?" Finally, he said "I wish I would have known. I didn't vote for him either time".

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