Why is Turbotax including longterm capital gains on stock sell in my income and increasing my tax? I file joint return and income is $55,000.

[VolvoGirl]

Even though it shows up as income on the first page,  if you have capital gains or qualified dividends the tax on line 12a 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.

[DoninGA]

Capital gains is income reported on a federal tax return, Form 1040, on Line 6.  It is included in your Total Income on Line 7b.

Since you reported capital gains on your return your taxes are calculated using the Qualified Dividends and Capital Gains Worksheet and reported on Line 12b.

Look at your federal tax return, Form 1040

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.