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steph0405
New Member

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

 
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Accepted Solutions
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Investment income includes interest, dividends, and capital gains. It also includes royalties and passive activities from Schedule E, though most taxpayers don't have to deal with those.  

If this exceeds $3,500 in 2018 then the EITC is gone. 

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12 Replies
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Are these short term capital gains?

versus long term (held more than one year.

Can you double check this entry as a $3,500 swing for reporting $1,500 something else is going on.  Make sure the sales price and the cost basis, do not have extra decimal places or commas.
Critter
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

This would negate any EIC you may have been getting.
steph0405
New Member

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Thank you for your answer. They are long term. I have tried entering (and removing) them 3 times. I have also tried uploading directly from my financial institution and I get the same result every time.
steph0405
New Member

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Critter#2 why would it cancel out the EIC?
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Can you do a preview of your tax return and tell me what is on line !7 without the capital gain and after it is entered.

To Preview a copy of the Form 1040 prior to paying for TurboTax.
A. Go to Tools in left side of screen and click on Tools
B. A box titled: Tool Center will open and below the 3 boxes is: Other helpful Links…
C. Click on the first one: View Tax Summary
D. Then in left side of screen click on: Preview My 1040
E. You can scroll up and down and see the numbers on a working copy of your Form 1040
steph0405
New Member

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Ok, I will do this.
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Investment income includes interest, dividends, and capital gains. It also includes royalties and passive activities from Schedule E, though most taxpayers don't have to deal with those.  

If this exceeds $3,500 in 2018 the the EITC is gone.   This is what Critter#2 is referring to.
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Have not heard from you for awhile.  Did you find the issue or still need help?
steph0405
New Member

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

I haven't been able to comment.
steph0405
New Member

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

My account was on hold for a while for some reason. It turns out I have more than $3500 investment income, so it wipes out the EITC. Which is such a bummer. Thanks for your help.
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Thank you and I will put that in the answer so others know this is closed.
MichaelL1
Level 15

My husband and I have taxable income of <40K. When I enter $1500 in Capital gains from sale of stock, our refund goes from >3K to owing $500. Why is this?

Investment income includes interest, dividends, and capital gains. It also includes royalties and passive activities from Schedule E, though most taxpayers don't have to deal with those.  

If this exceeds $3,500 in 2018 then the EITC is gone. 

View solution in original post

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