It should not, unless your modified adjusted gross income is over $250,000 if filing joint or $200,000 if single. Your capital gains dividends should only be taxed at probably15% and ordinary dividends would be taxed at your marginal tax rate. If you are over the modified adjusted gross income levels, an additional 3.8% net investment income tax is added. You can review your 1040 in TurboTax to pinpoint where the additional tax is coming from. Scroll down the form and find Schedule 2. That is were you will see any additional taxes.
You can review your 1040 in the following steps:
- While in your TurboTax account, select Tax Tools in the left margin
- Select Tools
- Select View a Tax Summary
- In the left margin, select Preview my 1040
