I know the basics, the theory of different capital gains rates, and in years past I simply use a scratchpad to estimate capital gains taxes (I don't file electronically nor with software, sorry), so my question is much more basic: if you look at Schedule D, the back page, the form literally asks you to combine short-term and long-term capital gains. This is clearly wrong. So, how (where) is/are the worksheets (Schedule D instructions), when you fill out Schedule D long term capital gains, for you to figure out your capital gains (0%, 15%, 20%)? I only found a Worksheet in Schedule D instructions for collectibles, and for long-term carryover losses, not for gains. I have also read this post:
https://ttlc.intuit.com/community/taxes/discussion/how-to-calculate-capital-gain-taxes-long-term-and... and I understand the theory that you should first include taxable income before calculating long-term gains.
Now I see why TurboTax is so popular, but please resist the temptation to just say "use TurboTax software it will automatically figure it out".
🙂 I'd like to know how messed up the Schedule D form is first.
