Long term capital gains: TurboTax is calculating taxes on my Long Term Capital Gains as 26%. Even The max Tax bracket is 20%. My Long Term Gain is 30K. Please advise.

[EdwardK]

To determine what tax rate is actually applied to the capital gains on your federal tax return, you would have to review the Qualified Dividends and Capital Gain Tax Worksheet if it is included in your federal tax return.

Since you appear to be using TurboTax CD/Download Windows, you may determine if the worksheet is included in your federal tax return by switching to Forms Mode Windows.

If the Qualified Dividends and Capital Gain Tax Worksheet is not included in your federal tax return, you should review how you entered stock sales, etc. and ensure you selected the appropriate sale category. Please review the following link(s) and the link(s) embedded on the webpage(s) for more information:

• What is Form 1099-B - Proceeds from Broker Transactions?
• Where do I enter a 1099-B?

While in Forms Mode Windows, you should also note if any additional taxes are reported on your federal tax return (Form 1040 Lines 45-46, 57-63). For example, TurboTax may automatically calculate and include IRS Form 6251, Alternative Minimum Tax - Individuals, IRS Form 8959, Additional Medicare Tax and IRS Form 8960, Net Investment Income Tax Individuals, Estates, and Trusts in your federal tax return, if applicable. Please review the following link(s) and the link(s) embedded on the webpage(s) for more information:

• What is the Alternative Minimum Tax (AMT)?
• Why am I getting hit with the AMT (Alternative Minimum Tax)?
• What Is IRS Form 6251?
• What is Form 8959?
• What is Form 8960?

[BornInChina]

I am facing the same issue with Turbotax 2019.

If I artificially remove a long term capital gain item (stock) - the gain was $26733, my fed tax would drop $6436. It means TurboTax is calculating the rate on capital gain as 6436 / 26733 = 24%. It is supposed to be 20% at most.

[Critter-3]

Yeah ... your income must have also triggered the form 8960 which adds a 3.8% NIT. 

[BornInChina]

Spot on! I later found the 3.8% in 8960...

[monizmary]

Thanks. This helped me solve a mystery.