Estimated Tax Calculation-2026

On TurboTax's Estimated Tax worksheet, are capital gains included in Other Taxable Income and Losses to come to Taxable Income. If yes, will TurboTax calculate it at the appropriate lower rate and not the ordinary income rate?

ThomasM125
Employee Tax Expert

Get your taxes done using TurboTax

Yes, you should include the net capital gain income in the "Other" Income category if you think it is taxable. You need to keep in mind that capital gain income is not taxable on your federal return if your taxable income is under $44,625 (single filer) or $89,250 (joint filer). Since you cannot distinguish it from other income in the TurboTax estimated income tax worksheet, it will be considered taxable at ordinary income tax rates.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Get your taxes done using TurboTax

Thank you for your prompt response. However, it is not correct as net capital gains should not be added to Other Income if it is also included in the Qualified Dividend and Capital Gains Information section of the Estimate Tax Worksheet. I say this because if you take Capital Gains from the Information section, plus Other Income, less Itemized Deductions, you get Taxable Income per the program. In other words, Taxable Income already includes Capital Gains (from the Information section) without including it in Other Income.

I'll respond to your income by including a marked-up version of the Worksheet, demonstrating the calculation.

Get your taxes done using TurboTax

what tool/worksheet are you referring to... the section under Other Tax Situations / Form W4 and Estimated Taxes, breaks out all these different income types

 

Screenshot 2026-02-18 at 1.42.50 PM.png

Get your taxes done using TurboTax

I'm referring to the section you referred me to, plus the next section (Other Income) on the Worksheet. Are capital gains to be included on both sections?

RobertB4444
Employee Tax Expert

Get your taxes done using TurboTax

If you have already included capital gains in the "Capital Gains" section then you definitely do not need to add it again anywhere else in order to arrive at your estimated income for the year.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"