Short term capital gains will be fully offset by your long term capital
losses carried over from previous years.
In additional - $3000 from your long term capital losses will be used to offset other taxable income.
So far because of your long term capital losses carried over from previous years - your situation will be very different from what we originally anticipated.
so your income would be
SS benefits - $17,244
interest income $755
ordinary dividends $1200
qualified dividends $12,584
capital gain $86,000 - short term will be offset by carried over capital losses
- total you will have $86,000 - 150,000 = negative $64,000 - from which $3000 will be deducted and $61,000 will be carried over to the following tax year.
So your Adjusted Gross income (AGI) would be $12,584 + $1200 + $755 - $3000 = $11539
None of your social security benefits would be taxable.
Because you are in low tax bracket - qualified dividends are taxed at zero tax rate
Assuming standard deduction (including additional for being above 65) - $7600
Personal exemption $3900
Taxable income - $86780
Estimated tax liability - zero - no need to itemize.
Let me know if you need any help.