If I subtract the amount shown on Line 7 as Capital Gains from the Adjusted Gross Income, the result produces a value lower than the Standard Deduction. When I look at the Capital Gains worksheets and the Qualified Dividends & Capital Gain Tax Worksheet they indicate no entry for any taxes due. I don't understand this process, I'm just reporting what the TT program generated. This would explain why I have an AGI in excess of the Standard Deduction with an entry on Line 15 showing taxable income and yet no tax. As I said, I don't understand how this works, but I'm quite happy getting the full amount of my ES Tax payments in a refund once I file the return.
