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Level 3
posted Feb 4, 2024 12:23:52 PM

Is TT calculating Cap Gains on Stock Correctly?

I have one short term covered stock I sold for $2174.49. I have short term losses of other stocks of -$1005.99. If I subtract out the ST loss I should be taxed on a gain of $1168.50 When I enter this into TT Premium the tax at the Fed level is $605 (27.82%) and CA State is $203 (9.33%). I am filing married jointly and the line 9 on the 1040 is less than $300K. What is going on here? Shouldn't it be 15% for fed =$1168.50x0.15=$175.28?

 

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1 Best answer
Level 13
Feb 4, 2024 4:39:47 PM

ST gains don't get the advantage of LT capital gains rates.  These are taxed at your ordinary income rate.

4 Replies
Level 13
Feb 4, 2024 4:39:47 PM

ST gains don't get the advantage of LT capital gains rates.  These are taxed at your ordinary income rate.

Level 3
Feb 4, 2024 8:28:15 PM

Thank you Rick. You are correct. Darn I was hoping it was a bug :(

Level 13
Feb 5, 2024 8:43:45 AM

Sorry, just the messenger 😎

Level 3
Feb 5, 2024 8:57:35 AM

No problem Rick.

 

However, I believe TT Premium still does have a bug as taxed on a gain of $1168.50 the tax should be Fed $325.08 NOT $605 and CA State should be $109.02 NOT $203 (9.33%).