Deductions & credits

You don't...

The capital gains value on the Schedule D is needed, and it DOES add to total AGI shown on line 15 of the form 1040....

 

BUT...the Schedule D value is then used on a separate tax calculation form to arrive at the tax in line 16 of the form 1040.

 

Usually, that tax calculation takes place on the "Qualified Dividends and Capital Gain Tax Worksheet", where the tax on capital gains is removed..(when appropriate)......but sometimes it happens on a different worksheet.

 

To see your actual calculation, you need to save your tax file as a PDF (with all forms and worksheets) if you are using the Online software....or if you are using the Desktop software, you can just switch to Forms Mode and find it there.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*