Why Cap Gains tax?

[MongoCobra]

I'm trying to estimate 2019 taxes for my son who is a single filer. He should have about 20k in earned income and we are deciding whether he should cash in on some long term cap gains on stocks. when i put the numbers into turbotax it is calculating a tax on the cap gains even though there is less than 39k in taxable income. I'm sure there is a box or something that i am missing somewhere because there should be not cap gains.  please help

[tagteam]

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@MongoCobra wrote:

...I'm sure there is a box or something that i am missing somewhere because there should be not cap gains.

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A box where? Which product are you using?

Are you certain you are not looking at the tax on the earned income rather than the capital gains?

If you are using a desktop version of TurboTax, enter Forms Mode and review the Qualified Dividends and Capital Gain Tax Worksheet. Otherwise, please post additional details.

[MongoCobra]

Thanks for the reply. I am using Turbotax premier.  in order to populate form 1099-B i used the interview to generate 15,000 worth of long term gain. i used a w-2 to input 20,000 in wages and taxes withheld. when i then removed the 1099-b by deleting the form and the refund amount increased, implying that the capital gain was being taxed. I didnt think that there was capital gain tax when the taxable income amount was below 39k

[tagteam]

@MongoCobra 

I did the pretty much the same thing, but the amount of the refund on my test return did not change when I removed the capital gain.

Are you certain you entered the gain as long-term and not short-term?

[MongoCobra]

yes it was long term. does it matter if they are a student or if the filer can be claimed as a dependent on someone else's return?

[tagteam]

Yes, that would make a difference if your son did not provide more than one-half of his support.

[Anonymous]

there apparently is a bug in the program.   tried with 15000 ltcg and then 15000 of qualified dividends - got different results - should have been exactly the same.   no qualified dividend & cap gain worksheet was generated. 

then used 2018 with same info - not much has changed in the way of  tax laws, but result i got was completely different 

i'm using TT deluxe on PC 

[tagteam]

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@Anonymous wrote:

there apparently is a bug in the program.   tried with 15000 ltcg and then 15000 of qualified dividends - got different results - should have been exactly the same.   no qualified dividend & cap gain worksheet was generated. 

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That is rather odd because I conducted the same test and got the same results; exactly the same refund amount and the worksheet was generated.

I have TurboTax Home & Business.

[Anonymous]

i got the desktop version of deluxe

[tagteam]

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@Anonymous wrote:

i got the desktop version of deluxe

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The results should be the same across the two versions but, then again, who knows?

All I can report is that I am getting the same, consistent, results with Home & Business with LTCG and then QD; did not make one bit of difference and the worksheet was generated.