Get your taxes done using TurboTax

The Line 15 number on Schedule D is carried to the 1040 line 13, in order to calculate your Adjusted Gross Income (on which many limitations are based). However, your tax due calculation is done one of several ways: Tax Tables, Tax Rate Schedules, Qualified Dividends and Capital Gains Worksheet, etc.

That is, go into forms mode and look for a form called "Qual Div/Cap Gn". This is the worksheet that separates the qualified dividends and long-term capital gains out from the AGI as reduced by exemptions and standard/itemized deductions, and then applies the capital gains tax rate to the qualified dividends and capital gains and applies the ordinary tax rate to your ordinary income.

Since you have the desktop version of the software, take a look at your 1040. Look for the "Tax Smart Worksheet". This will tell you where the tax came from.

 

[Edited 3/26/2020 1:22 pm CDT - made year neutral]

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