I sold some stock this year and paid (a little more than) the estimated taxes for both Federal and the State of California, based on the tax rates shown on the internet. I did my complete tax return on TurboTax, except for the Capital Gains, and expected a substantial return, since I prepaid the Capital Gains. When I got the final Capital Gain 1099-B, I entered that in, as well as my estimated tax paid, and my return went down by several thousand dollars. It is my understanding that Capital Gains should not affect my tax rate. Why did my taxes go way up?
