___________
I got my tax document from my brokerage a few days ago and I freaked out.
I had made a couple of large (for me) trades early in 2022 that I had forgotten about.
I saw the capital gains and thought I was going to owe a gigantic amount of tax because of it.
It took me quite a while, it shouldn't have but it did, before I finally realized it was a long term capital gain.
Because it's long term I will owe nothing in taxes which is the case for married filing jointly with combined income less than $83,350.
Because my wife and I are retired this applies to us.
Short term capital gains are taxed just like income.
What a relief.
Long term capital gains are the only kind of money making that I know about whereby the IRS doesn't take a crushing % of the profit
never before have I ever made anywhere near this much and owed no tax
https://www.irs.gov/taxtopics/tc409
.