Retirement tax questions

ErnieS0 · ‎February 2, 2023

@StreamTrain is correct. Net capital gains are added to other income even though they are taxed at a different rate because your total income (regular + capital gains) may limit some deductions or credits.

The actual capital gains tax computation takes place elsewhere on the Tax Smart Worksheet. You will see checked either Schedule D Tax Worksheet or Qualified Dividends and Capital Gains Tax Worksheet.

To see this worksheet:

Click Tax Tools in the left column
Click Tools below that
In the center column, select View Tax Summary
In the left column click Preview my 1040
You will see Federal 1040
Scroll down until you see Tax Smart Worksheet
When you are done, click Back in the left column

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