Short-term & long-term capital gain added together to line 13 in form 1040. Then how can they taxed at different rate?

[MinhT · Accepted solution]

Although both long-term and short-term capital gains are added together on line 6 of form 1040, TurboTax will correctly calculate taxes based on amounts reported on Schedule D, where long-term and short-term capital gains are reported separately.

Edited 03/09/2020  |  1:08 PM PST

[tonyo]

Hi MinhT, if short and long term capital gains are added together and TurboTax will correctly calculate taxes based on the amounts reported on Schedule D, why is the total amount (STCG&LTCG) added to the total income and tax bracket is applied on line 10 of 1040?  Where is the adjustment being made?

[Anonymous_]

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@tonyo wrote:

...Where is the adjustment being made?

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Are you referring to the 2018 Form 1040? Regardless, the calculation is made on the Qualified Dividends and Capital Gain Tax Worksheet.

See https://apps.irs.gov/app/vita/content/globalmedia/capital_gain_tax_worksheet_1040i.pdf

[dave3100]

There is a schedule D tax worksheet that computes your tax. In Turbo Tax 2019 go to view / forms and select the form "Schedule D Tax".  This worksheet calculates your tax including short and long term capital gains and then enters the result on line 12a 1040

[aphilip1]

In 2018 form , you added both short term and long term capital gains and them moved that amount to 1040 . But in 2019 you did it correctly

[aphilip1]

In 2018 tax forms , after adding long and short term capital gains and then they added that to my income and calculated the tax

[Critter-3]

Save a PDF of your 2018 return so you can see the QDCGT worksheet ... that is where the different tax rates are calculated ...  

How do I get a copy of a return I filed this year ...