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MongoCobra
New Member

Why Cap Gains tax?

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

9 Replies
tagteam
Level 15

Why Cap Gains tax?


@MongoCobra wrote:

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


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
New Member

Why Cap Gains tax?

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
Level 15

Why Cap Gains tax?

@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
New Member

Why Cap Gains tax?

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
Level 15

Why Cap Gains tax?

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

Anonymous
Not applicable

Why Cap Gains tax?

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
Level 15

Why Cap Gains tax?


@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. 


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
Not applicable

Why Cap Gains tax?

i got the desktop version of deluxe

tagteam
Level 15

Why Cap Gains tax?


@Anonymous wrote:

i got the desktop version of deluxe


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.

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