Yes, it shows up on the 1040 as income, which I believe is correct, what I don't believe is correct is calculation of the tax. If I remove the capital gains altogether, there is a calculated tax which is a small amount, say $150, but when I add the long term gains back, the total income show $37,000 (which puts me in the 15% tax bracket). That means I should be at a 0% tax rate for the gains, so that mean the taxes should remain around $150 as calculated without, but it shows up at $4000+ in taxes, not cool. I'll dig into the actual form to see what might be going on, but I would think that TurboTax should calculate this correctly. Could this be a bug in TurboTax?
