My mutual funds in my taxable account distributed capital gains in December. When I look at Turbotax, it appears to put this on line 8 of the 1040 and therefore seems to treat as ordinary income. I am certain that this should be LT capital gains and taxed at the Capital Gains rates instead of Ordinary Income. Could you explain how Turbotax deals with this? I have looked through the entire tax return and only see it added to income thus creating a larger tax liability on that income. Any ideas?
