Since TurboTax is calculating your Schedule D tax, your income tax is most likely being calculated on the Qualified Dividends and Capital Gains Worksheet. When this worksheet is used to calculate income tax, your income is broken down into certain categories. Long-term capital gains and qualified dividends are separated from other income and taxed at lower rates.
Going through that worksheet one line at a time would show how the total tax was calculated. Take a closer look at line 9 for the portion of your income that may be taxed at 0%; line 17 for the portion taxed at 15%; and line 20 for the portion taxed at 20%.
If you are using one of the CD/downloaded versions of TurboTax, you can find the worksheet by going to Forms Mode. Click Forms in the upper right corner of the screen. Then, look for Qual Div/Cap Gn in the list on the left side of the screen.
If you are using TurboTax Online, you will need to pay for your return and then print or preview the return to find the worksheet.
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