Mutual fund sales and the effect on refund

[carolynstaley]

I need help understanding...

I sold some mutual fund stock that I've had for about 10 years.  The total gain-$5806   Cost basis-$6152

This reduced my refund by $2918, over half prior to entering the sale in TurboTax.   I just don't understand why, am I making a mistake?  My income on my summary is 36K.

[JamesG1]

Your cost basis of the mutual fund was $6,152.  The LT capital gain was $5,806 and other reported income was $36,000.

I entered a similar numbers into TurboTax H & B and the income was taxed at 15% on the Qualified Dividends and Capital Gain Tax Worksheet.

Many things could explain the difference but the additional tax of $2,918 seems high since it is 50% of the gain you reported.

Is the sale reported as a LT gain?  Are you able to view the Qualified Dividends and Capital Gain Tax Worksheet to see how the gain was taxed?

The worksheet can be viewed here on page 33 of the IRS publication.

[carolynstaley]

I just spoke with someone from TurboTax live....

Turns out, I lost the EIC when I had over $3600 in investment income.   

Disappointed, but I still have a refund coming-that's a plus.