You have to read the instructions more carefully.
Line 22 of the worksheet tells you to calculate the tax on the amount on line 5 of the worksheet, not on your total taxable income. Line 5 is your taxable income minus qualified dividends and long-term capital gain. On the Tax Computation Worksheet you use that line 5 amount, not your total taxable income. See the note at the top of the Tax Computation Worksheet:
"Note. If you are required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified Dividends and Capital Gain Tax Worksheet, . . . enter the amount from that form or worksheet in column (a) of the row that applies to the amount you are looking up."
Qualified dividends are on Form 1040 line 3a, not 3b. The qualified dividends from 1040 line 3a are entered on line 2 of the worksheet, and then subtracted from the taxable income on line 1 of the worksheet.
Form 1040 line 7 is net capital gain. It is not necessarily the same as long-term capital gain. It could include short-term gain, or be reduced by short-term losses. Line 3 of the worksheet takes the long-term capital gain from Schedule D line 15 or 16.
