There are different Tax calculation sheets for different purposes.
LT Capital Gains (line 7 of the 1040) and Qualified dividends (line 3a of the 1040) are included in your AGI and Taxable income values, but the tax table is not used for those $$.....some of those $$ are taxed at 0%. Thus the line 16 tax is usually lower than the tax tables would indicate.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
