The worksheet used to calculate your taxes when taking capital gains into account is found in the IRS Instructions for Form 1040. It is called the Qualified Dividends and Capital Gains Tax Worksheet. This worksheet will be included as part of your tax return if it is being used to calculate your tax. If you are using a CD/downloaded version of TurboTax, use Forms mode to look for the Qual Div/Cap Gn form in your return.
You should take a look at the worksheet and plug in your numbers to see how the tax is calculated. Trying to look at your income one piece at a time will not explain the overall tax shown on your return. You have to take everything into account at the same time.
You can find the worksheet on page 36 of the PDF document at this link: 2021 Form 1040 Instructions
@chrisflorescu
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
