I'm sorry. I was in a hurry and misspoke when I said "no good at all". I should have said that in the 12% bracket, you lose one of the benefits of tax loss harvesting. But as pointed out by grabiner, you do not lose the other benefit.I'll be either in the 12% or if business somehow gets better I could get a little bit into 22%. Would TLH hurt me at all or just possibly give me little to no benefit?Check again. If you are earning $40 to $50k, you won't be in the 22% tax bracket. Your LT gains and QDs could be taxed at 0%....Tax loss harvesting may do you no good at all.I took a pay cut and am working at a place where I'll be in the 22% tax bracket. I wonder how much TLH will help me if I'm earning around 40-50k. The account balance of Betterment is around 50k all taxable currently. I'm adding 200-400 a month to it.
YOu need to look into this further.
And probably start your own thread.
What you lose: Later on if you sell shares at a gain, the gain will be offset by the losses you have or are carrying over from a previous year. The problem is that that gain would have been taxed at 0% anyway so the losses are sort of wasted.
What you do not lose: each year, you can offset $3k in income using those losses. So if your taxable income is $33,000 that year, you get to subtract $3k and only pay tax on $30,000 instead. If you still have losses left, you get to do the same thing the next year. And so on.
Statistics: Posted by retiredjg — Wed Jan 10, 2024 8:28 am