Long Term Capital Tax Gain Taxed at 18.8% when taxable income falls into 15% tax rate

[mlubecki]

Hello, I notice when I enter a long term capital gain, it is calculated at 18.8% rate ($4,651.44 gain and $875 tax). I am using TT online version, do anyone know why this is?  Thanks! 

[AamilD · Accepted solution]

It depends. While your capital gains may be getting tax at 15%, there is an additional 3.8% Net Investment Income Tax if your income is above $200,000 (single) or $250,000 ( Married Filing Jointly).

If your income is above the threshold mentioned above, then that may be a reason why you are getting taxed at 18.8% (15%+3.8%).

[mlubecki]

Aha, that must be it. Thank you!