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I am in the highest tax bracket, and I have long term cap gains of $50k. From what I understand, these gains should be taxed at 20%. However, the system is entering my long term gains into Schedule 1, and then this amount is then being carried over to line 6 of 1040 and added to my total income, with the result being it is being taxed at the highest bracket, ie the same as a short term cap gain. Is there an error with the forms or am I not understanding something?
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The forms are correct. What you need to look at is the "Qualified Dividends and capital gains worksheet" where the tax calculations are made, when you have LT cap gains. Depending on your situation you may have a "Schedule D Tax worksheet" instead of the Qualified Dividends and capital gains worksheet.
The forms are correct. What you need to look at is the "Qualified Dividends and capital gains worksheet" where the tax calculations are made, when you have LT cap gains. Depending on your situation you may have a "Schedule D Tax worksheet" instead of the Qualified Dividends and capital gains worksheet.
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