are you losing certain tax credits (EIC?) that is driving this because I agree it doesn't other wise make sense. do you receive social security that is now taxable because of the long term gain?
there is a document that is available in the desktop version called "QualDiv/ Cap Gn" that will show you all the gory calculations of how income tax is calculated at both the ordinary and capital gains tax rate. Check that out and it'll will explain what is occurring.
