My tax return shows a line 43 taxable income of 28569 but amount of tax due is 0. What is wrong?

[jag998]

The only thing different about this return is that I have a capital gain from the sale of a second home. The capital gain amount shown on line 13  is 30914.00.

[ChristinaS · Accepted solution]

If a large part of your income is a long term capital gain, a 0% tax rate is possible. Its not likely that Turbo Tax is incorrectly calculating your tax. Are you done adding all of your income?

If you have qualified dividends or capital gains, your tax is not calculated using the tax tables.

Go to:

-Forms (top right)

-Form 1040 (should be at the top along the left).

-Scroll to look below line 44. It will indicate how your tax is calculated in the Tax Smart Worksheet.

The Qualified Dividends or Capital Gains Worksheet will be included in the list of your forms within desktop.

This is how your tax is calculated.