Miscalculated capital gain tax

[Pilica]

I just did my taxes with turbotax yesterday. I think the program miscalculated my capital gain tax and I need help fixing this.

[VolvoGirl]

There haven't been other posts about that.  

It depends on what kind of income you have, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.  In the online version you need to save your return as a pdf file and include all worksheets to see it.

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.

[Pilica]

Thanks, I am confused because I thought the first 80k of capital gains was taxed at 0% then the rest at 15% as long as my income didn't go above the 400k+.

[Critter-3]

Your other income is added into the tax calculation and as such are not taxed in a vacuum.   Please review the QDCGTW carefully to see how the cap gains are taxed ... the program does math very well.  

[SweetieJean]

What type of asset did you sell?  Was it, for example, a  rental property?  Also note that some states do not follow the Federal calculations.

[Pilica]

My other income is low (exempt).

[Pilica]

Stocks. I'm only trying to understand the different % based on amounts. I thought my capital gains up to 80k we're taxed at 0% and the rest at 15%

[AmeliesUncle]

The 'extra' income can affect MANY other things on the tax return.  Some deduction or credits may have been reduced.  You could be subject to AMT.  You could be subject to the 3.8% Net Investment Income Tax.

You need to look at the 1040 to see what changed.  You can't just look at the refund/tax owed because as I mentioned before, that 'extra' income can affect many other things on the tax return.

[Critter-3]

Also the short term cap gains do not get the more favorable tax rate however they do add to the total income calculations.