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Do I pay a capital gains tax (0%,15%,or 20%) AND an income tax (whatever my tax rate will be) on the same long term capital gains money/income? Does CG get taxed twice?

Seems to me that my capital gains in being taxed, once at the capital gains tax rate and then the same amount of money (entire capital gain) is being carried over as income and included in my normal tax rate.  Is this correct?
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2 Replies
Hal_Al
Level 15

Do I pay a capital gains tax (0%,15%,or 20%) AND an income tax (whatever my tax rate will be) on the same long term capital gains money/income? Does CG get taxed twice?

Q.  Do I pay a capital gains tax (0%,15%,or 20%) AND an income tax (whatever my tax rate will be) on the same long term capital gains money/income?

A. No

 

Q. Does CG get taxed twice?

A. No

 

It's not clear what you're seeing, but you're misreading it.  The calculations are shown on the "Qualified dividends and capital gain tax worksheet"  which essentially shows the capital gain being taxed at the lower rates

RaifH
Expert Alumni

Do I pay a capital gains tax (0%,15%,or 20%) AND an income tax (whatever my tax rate will be) on the same long term capital gains money/income? Does CG get taxed twice?

The calculations are done behind the scenes both in the TurboTax software and in the way that it is presented on Form 1040. The instructions for Form 1040 do include the worksheet @Hal_Al referred to. It shows how your total tax is calculated and that you are only being taxed once on your long-term capital gains. 

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