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Returning Member
posted Feb 4, 2021 12:22:53 PM

Are the long term capital gains tax rates working? I'm married filing jointly, with less than $80 of income, yet my long term capital gains are still being taxed?

less than $80k of income.

0 6 2552
6 Replies
Expert Alumni
Feb 4, 2021 12:48:42 PM

Long term capital gains are taxed at 0% if your tax bracket is 12% or less (less than $80,250 of taxable income for MFJ)..

 

However, long term capital gains are included in your taxable income, and that part of long term gain which crosses over $80,250 is taxed at 15%.

Returning Member
Feb 9, 2021 9:05:20 AM

Thanks but that's not how it worked last year, or how the long term capital gains rates are advertised.  It says, if your married filing jointly income is less than $80k, then the long term capital gains rate is 0%.  Yet my long term gains are being taxed in this year's version of Turbotax.  They were not taxed last year at all.  So it seems the law has changed or Turbotax is not working as it should.  Who can I talk to about this?

Expert Alumni
Feb 9, 2021 8:24:05 PM

If you are using the CD/download software, you can look for the Qualified Dividends and Capital Gains Tax Worksheet (heavily abbreviated so use your imagination for the name of the worksheet). This worksheet shows how your income tax is calculated if you have capital gains or qualifying dividends. There are other worksheets for other situations.

 

Finding this worksheet will help explain how TurboTax calculated the tax.

 

If you are using the Online product, you might not be able to see this worksheet until you pay for the product.

Returning Member
Feb 11, 2021 8:27:39 AM

Thanks your response is helpful.  But I just went through over 200 pages of my return, and I can't find a worksheet that shows the actual math of how my taxes are being calculated.  What I'm looking for is how the tax rates are actually applied against which income sources to come up with a total.  Where can I get this information or who can I talk to?  Last year I signed up for live tax advice and it took 3-4 different advisers before I found one who actually knew how things worked.  Where can I go for real help within Intuit?

Expert Alumni
Feb 14, 2021 6:06:25 AM

When you are in Forms mode in TurboTax Desktop the worksheet is labeled 'Qual Div/Cap Gn'.  This will show the tax calculations for your return, including the capital gain.  See the image below for assistance.

 

If you would still like to reach to someone you can begin with using this link: Contact us

Or you can use this link to schedule Live Tax Advice.

Level 1
Mar 30, 2022 11:07:42 AM

Thank yu so much.  it was indeed the qualified dividends not the capital gains on the mutual fund sale..