MargaretL
Expert Alumni

Investors & landlords

It is very possible that you were not taxed at all on your gains or were taxed a small amount and your federal withholding covered it anyway. The reason is: not all capital gains are treated equally and the tax rate varies between short-term and long-term gains. 

If your gains are long term (your stock was held longer than a year), you really benefit from a reduced tax rate on your profits. For 2016, the long-term capital gains tax rates are 0, 15, and 20 percent . If your ordinary tax rate is already less than 15 percent, you may pay zero percent long-term capital gains rate- which means you will not see a difference on your refund/ tax bill.

When you are done with your tax preparation, you may want to look at your form 1040 (and you can do so before you pay for the program) - page 2 of the form displays Tax Smart Worksheet (right under line 43).  You will see the amount of tax and where tax is from. If item 4, Qualified Dividends and Capital Gain Tax worksheet is checked, you are paying "favorable" tax and, based on your tax bracket, you may not see increase in your tax bill or decrease in your refund. 

 

To preview Form 1040:

  1. From My account drop down, select Tools (you must be logged into your tax return and IN your tax return - you may have to select Take to my return or Pick up when I left off orange button)
  2. Select View Tax Summary
  3. Select Preview my 1040 

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