That all seems fine, but it is not reflective of our situation. As a married couple filing joint return, our taxable income is well below the $80,000 threshold. As I mentioned in my query, I figured our tax with the capital gains included, and we were still well under the $80,000 threshold, and I came away with figure X. I then excluded the capital gains (and only the capital gains) and income was even lower, and our tax was over $1000 less.
No amount of calculations and line entries can refute the fact that, assuming TurboTax is correct, by reporting around $13,000 of capital gains, we incurred an increase of over a $1,000 in taxes. It really is as simple as that. What I don't know is how are my taxes calculated--from a table or from a rate schedule. TurboTax doesn't tell me that.
If you like, I can share the line numbers from our return.
