<prompt> Human: Taxable account. FB stock. Held longer than a year. Anticipating about 25k in earnings on that stock. Total projected personal income from work in 2018: about 35k before the 12k personal deduction. I read the link on Motley Fool and thought I wouldnt have to pay anything since my income falls below a certain threshold. Can someone clarify this for me?  <response>: So you have 12K standard deduction, about 23K ordinary income, then 25K of long-term capital gains forming your income stack. The 0 rate on LTCG ends at 38600 of taxable income, so for you:12000 wages not taxed 9525 wages taxed at 10 13475 wages taxed at 12 15600 cap gains taxed at 0 9400 cap gains taxed at 15---You might think of it as 953 1617 2570 income tax on 35000, i.e. effective rate of 7.3.Then 1410 of cap gain tax on 25000, i.e. effective rate of 5.6.Or combined, tax of 3980 on 60000, i.e. effective total rate of 6.6. 