long term capitol gain tax issue

[Bill0512]

I entered 1099-B showing a long term gain on sale of mutual fund.  The fund was held over 12 months.

Filed as MFJ with taxable income of $69,000.  The gain should be 0.00 tax.  It shows on our 1040 form as income subject to tax.  Please explain

[ThomasM125]

Your capital gain income will be included in your taxable income as per IRS guidelines. However, when your tax is calculated, it may not be taxed based on the amount of your adjusted gross income. When you finish your return and pay for it, you will be able to see the Qualified Dividends and Capital Gain Tax Worksheet which will indicate how your tax was calculated.