If your stock sale proceeds qualify for capital gain treatment, then, as you noted, you won't pay regular income tax on those proceeds. If your capital gain rate is zero, you won't pay capital gains tax either. TurboTax isn't ignoring your data - it's treating your data correctly based on your entries. TurboTax will generate the forms and schedules you need for your tax return.
Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gains may be taxed at 0%. For taxable years beginning in 2023, the tax rate on most net capital gains is no higher than 15% for most individuals.
A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $44,625 for single and married filing separately;
- $89,250 for married filing jointly and qualifying surviving spouse; and
- $59,750 for head of household.
If you have a net capital gain, a lower tax rate may apply to the gain than the tax rate that applies to your ordinary income. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss for the year. The term "net long-term capital gain" means long-term capital gains reduced by long-term capital losses including any unused long-term capital loss carried over from previous years. The term “net short-term capital loss” means the excess of short-term capital losses (including any unused short-term capital losses carried over from previous years) over short-term capital gains for the year.
See IRS Topic 409 for more information.
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