@ aballestin wrote:
I am filing my 2025 tax return (married-jointly), we have a $72,000.- long term capital gain, according to IRS rule, it should have a rate of 0%, up to $96,700.-
Turbotax is calculating a rate of 15%.
I'm a fellow user, not a tax expert, but hopefully TurboTax @ DavidD66 will return to the thread to help explain what you are experiencing. But in the interest of time, I'll ask you a couple of questions that will help him.
The rates used for long-term capital gains calculation, including how much (if any) can be taxed at 0%, do not go solely by the amount of the gains, but also depends on one's overall taxable income. Approximately how much additional taxable income do you have over and above the L.T. capital gains? i.e., what is the approx. total of the LT cap gains and the rest of your taxable income? or more simply, what is the approximate amount of the taxable income shown on Form 1040, Line 15? You can use a general approximate number as an example; this is a public Internet forum.
If using the desktop version, did you look in Forms Mode at the Qualified Dividends and Capital Gains Worksheet as I suggested above to see how it's being calculated? That worksheet starts off with the amount of taxable income from the Form 1040, Line 15, then calculates how much is taxable at 0%, how much is taxable at 15%, etc..
And what type of taxable LT gain is this? Is it from sale of stocks, bonds, or some other asset? Is it from a Form 1099-B?
