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If you have capital gain distributions reported in box 2.a of your 1099-DIV, that amount will flow to Schedule D line 13, which is the long term capital gains section. Is TurboTax doing something different with your mutual fund capital gain distributions? If so, please explain what is happening.
Thanks for the response DaveD. Turbotax appears to be taxing these at the short term rate. I understand that income increases can change tax brackets and have non-isolated impacts upon tax. Is box 2a for long term gains by default, and short term gains go into box 1a with dividends?
Box 2a should be carried over to the long term section of your schedule D? What makes you think that these are being taxed at the short term rate? Where is the system entering these numbers?
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