Is turbotax incorrectly calculating the long term capital gains on cryptocurrency? The 2021 rates should be 0% for the first $40,400. This does not appear to be the case.

[smog187]

Sold about $45k of crypto in 2021 (cost basis was negligible). I expected to only pay 15% capital gains on the profit beyond $40,400 per the 2021 long term capital gains rates. Turbotax instead is calculating something else.

Simplified example:
$45,000 sale with $0 cost basis results in a $43,027 capital gain.
Expected result: (43027-40400) * (.15) =  $394.05 in cap gains taxes due.
Actual result from turbotax: $7151 in cap gains taxes due.

Not sure what to do, but I've got 12 days to figure it out.

[SDun12]

You misunderstand how capital gains tax rates apply.  It's not 0% on the first $40,400.  Your personal capital gains tax rate is 0% if your filing status is single and your total taxable income is under $40,400.  YYour entire capital gain of $45,000 is taxable at the 15% rate since your taxable income exceeds $40,400.  TurboTax is calcuating your tax properly. 

If you cannot pay this tax when you file you should still file your return on time and pay as much as you can (or at the very least file an extension of time to file- which does not extend time to pay).

The IRS will let you pay in installments if necessary.   The penalties for filing late are greater than the penalties for paying late. 

[MinhT1]

Long term capital gains are taxed at 0% if your tax bracket is 12% or less (less than $40,525 of taxable income for Single filing status)..

However, long term capital gains are included in your taxable income for the calculation of your tax bracket, and that part of long term gain which crosses over $40,525 is taxed at 15%.

Please read this IRS document for more information.