Capital Gain tax calculation appears to be too high

[mokus]

Married couple filing jointly had AGI of less than  496600.   23.8% (20+3.8) long term capital gain tax was calculated, but I think it should be only 18.8%  (15+3.8) because AGI is under $469600.

Is there something wrong with the way TT calculates?

How can I correct it?

[Mike9241]

did you have any ordinary income because that would get taxed at higher than 15%? check the capital gain calculation worksheet

[mokus]

 My understanding was that as long as the  AGI is less than $496600, the capital gain is taxed at 15%. if above,  20%.

[Hal_Al · Accepted solution]

Because  you say "appears" too high, I suspect you're just misinterpreting the bottom line. The capital gains tax is calculated on  The Qualified Dividends and Capital gains worksheet  (for some people it will be the Schedule D worksheet).  Review the worksheet for the calcs to see if you are really being taxed at 20% instead of 15%.

The net investment income tax (the 3.8%) is calculated separately on form 8960. 

[mokus]

Thank you for your answer. 

Let's just add some hypothetical numbers:

Taxable ordinary income $425K, capital gain $25K. On the Qualified Dividends and Capital Gain Tax Worksheet the capital gain is calculated correctly  with 15%. But if I add this $25K capital gain income in TT, the owed tax amount increased by 23.8%. What am I missing?

[SweetieJean]

You may be losing some credits (such as the Child Tax Credit) due to the increase in income.