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stock123
New Member

Long term stock

why my truboxtax counts $1000 tax for my $6000 long-term stock income?  It should be 15% flat rate as our family income is $180000. please answer asap. I am doing my 2016 tax now. Thanks

1 Best answer

Accepted Solutions
VolvoGirl
Level 15

Long term stock

When you enter one taxable transaction, you can't just watch the monitor.  You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.

Even though the Capital Gains is taxed at a different rate it still increases your income and AGI so you might be losing some of your credits or deductions, like the EIC or the limit on Medical deductions (only over 10% of your AGI) or Employee Job Expenses (only over 2% of AGI).

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

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4 Replies
Critter
Level 15

Long term stock

The sale of stock could be effecting other things like taxable SS benefits, deductions & credits.

Since you have the superior downloaded program you can switch to the FORMS mode at will and review how the sale is effecting your return.   Look for the Qualifying dividends & Long Term Cap gain tax worksheet.
SweetieJean
Level 15

Long term stock

As your income goes up, certain deductions and credits can go down.
VolvoGirl
Level 15

Long term stock

When you enter one taxable transaction, you can't just watch the monitor.  You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.

Even though the Capital Gains is taxed at a different rate it still increases your income and AGI so you might be losing some of your credits or deductions, like the EIC or the limit on Medical deductions (only over 10% of your AGI) or Employee Job Expenses (only over 2% of AGI).

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.
SweetieJean
Level 15

Long term stock

That link is bad.

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