You cannot change or update the PDF that you print. You cannot change the tax calculation that was done by TurboTax, which is correct.
When you have long-term capital gains, the total is added to your income on Form 1040 line 7. However, just because it is added to your income, that does not mean that it is being taxed as ordinary income.
There is a separate worksheet called the Qualified Dividends and Capital Gains Tax Worksheet. Without going into great detail, this worksheet separates your capital gains from the rest of your income and applies the capital gains rate to the the capital gains income (which is lower than the ordinary income tax rate).
If you look at this worksheet, pay attention to lines 23 and 24. The tax calculated on line 23 takes into account the capital gains tax. The tax calculated on line 24 comes directly from the tax tables. Then, the lesser of those two lines is reported on line 25 and Form 1040 line 16. Therefore, if the capital gains tax rate gives you a lower overall tax, then that is the tax on your Form 1040.
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