Scenario:  W2 income is $35 256.00, Interest income $2529 - 12 000 MFS standard deduction = taxable income 25 785 with tax liability of $2 903.

Scenario: Same w2, interest income, + capital gain line 6 of $13 240 = taxable income of $ 39 025 after 12 k deduction, the tax liability is $2 139.00?

Can someone please help me understand why an additional $13 240 of capital gain

reduced the tax liability? I would think there would be more since there is higher taxable income. I understand the different long term capital gain tax rate, but since w2 has not changed, even if capital gain tax is zero, shouldn't the tax liability be the same at $2903?

Thank you in advance.