Taxable Income is $292,996, filing jointly. When I enter a long term capital gains of 31,746 from a K1 , my taxes increase $7,524 which is 23.7%. That seems high. Ideas?

Forum|Forum|1 year ago
March 6, 2025
2 replies
9 views

Basically, I suspected I would be charged 20% of the $31,746, but when I enter the number, the taxes increase enough to be equivalent to 23.7%. I didn't think there were other taxes on long term capital gains. I am filing jointly, so the income does not move my regular income into a different tax bracket, so that should not be a factor. I suspect there is something I am missing, but I cannot find anything that explains this. I would love to know if someone has insight.

missouriblakeAuthor

Level 2

I should add that turbotax says this:

Long-term capital gains are generally taxed at preferential tax rates. Based on the information you've provided so far, the $31,746 will be taxed at 15%.

A portion or all of this gain may also be subject to a Net Investment Income Tax of 3.8%.

So some other taxes are sneaking in somewhere, but I cannot find where. Thanks.

Vanessa A

Level 15

We cannot see your return, so we cannot specifically tell you why it changed.

It likely moved or removed something else as you are correct, it would be a 20% tax maximum on the gain and that with your income filing jointly it would not have moved you to a higher tax bracket. You would also be in the 15% bracket.

What you can do is print out your form 1040 and your schedules with the capital gain in place and then delete it and print out your 1040 and schedules and compare the 2. This will tell you where the difference is coming from. Before doing that double check the numbers that you entered to be sure there is not a typo.

If you are using the desktop version, you can go into forms mode and use data source to see any numbers that change.

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