I've entered some estimated stock transactions on Form 8949, which flows to Sch D.
From Sch D the net gain flows to the new Sch 1.
From Sch 1 it flows to the 1040 where it is added in to line 6.
At that point, deductions are applied and then tax is figured.
It would seem that my capital gains are being taxed at my full tax rate which is greater than the capital gains rate (because capital gains has been fully added to my income).
What is going on? Shouldn't capital gains be taxed at a lower rate than income?
