Annette, thank you for the prompt reply. "The missing piece is that in the end, the total tax calculation using the gains added to other income is compared to the tax calculation using the graduated capital gains rates and the lesser tax amount is used on your return." That answers my concern about double taxation and I was not aware of the Qualified Dividends and Capital Gains Tax Worksheet which shows the calculation. I have since located this form in my TurboTax output. Thanks again!
