My parents sold their primary residence and had a taxable gain of 1,000,000 on the sale (that's after the 500,000 exclusion). Their annual income before the gain is 82000 which I thought put them in the 15% bracket for long term capital gains (owing $150,000) but Turbo Tax calculates that they owe 20% ($200,000). Please explain why they are being taxed at 20% and not 15%.
