Where does 15% rate on LTG get applied?

[Deleted]

I'm trying to do a projection of our 2014 and 2015 AGI to fill out a form requesting that the Rich People's Surcharge (e.g. IRMA) adjustment to my husband's Medicare premiums be revised because I retired in 2014.  I've got decent estimates of capital gains and losses from our brokerage statements- about $50K long-term and $2K short-term.  I should be able to find my way around tax forms but they've become way too convoluted. 

Does the entire $52K go into our AGI?  If so, where does the rate of 15% on long-term gains get applied?  It looks like the whole $52K goes onto Line 13 of the 1040, but then ordinary tax rates would apply, wouldn't they?

Thanks for any help you can provide. 

[taz157]

Yes, the total $52K goes into your AGI.  The rate of 15% is calculated during the total taxable income calculation.  There's basically 2 different calculations that are completed.  Look at page 44 on this PDF (http://www.irs.gov/pub/irs-pdf/i1040.pdf).  Keep in mind, it's for 2013, but it will give you an idea.

The ordinary tax rates won't apply to the $52K.  Keep in mind, the $50K long-term capital gain is 15% LTCG rates while the $2K short-term capital gain is at ordinary rates.

[Deleted]

Thanks! It was impossible for me to find a straightforward answer anywhere else. 

[taz157]

No problem.  I know it's confusing.

FYI - I'm a licensed CPA in 2 states that prepares taxes for a living.  Let's just say I understand.  At times, it's still confusing for me at times.