Do "capital gains" add to your total income for the purpose of determining your tax bracket or are they taxed at the rate of your income-only tax bracket?
I do not believe capital gains adds to your total income for determining your tax rate.This is correct. In 2011 for a non-married individual, if you make less than $34,500 you would pay 0% capital gains taxes. So, before you sell your bitcoin, ask for a reduction in your salary, then wait a year
Or just retire, then wait a year.
If retiring = zero income, then yes. But any distributions from qualified plans, deferred comp, stock options, rental income, 85% of social security etc.. all count towards ordinary income.
Social Security payments don't, and the sad fact is that most Americans over 55 are counting on SS as a major component of their retirement funding, because they didn't bother to save anything.