topic Capital Gains if Estimated Taxes Paid in Deductions & credits

Capital Gains if Estimated Taxes Paid

NoraC — Mon, 09 Mar 2026 06:11:46 GMT

I sold some stock this year and paid (a little more than) the estimated taxes for both Federal and the State of California, based on the tax rates shown on the internet. I did my complete tax return on TurboTax, except for the Capital Gains, and expected a substantial return, since I prepaid the Capital Gains. When I got the final Capital Gain 1099-B, I entered that in, as well as my estimated tax paid, and my return went down by several thousand dollars. It is my understanding that Capital Gains should not affect my tax rate. Why did my taxes go way up?

Re: Capital Gains if Estimated Taxes Paid

Bsch4477 — Sun, 13 Feb 2022 01:07:02 GMT

We would have to know your taxable income but see if your capital gains pushed your taxable income into the 15% tax bracket for capital gains. Also, if you have social security income more of that would be taxed.

Re: Capital Gains if Estimated Taxes Paid

NoraC — Sun, 13 Feb 2022 01:26:48 GMT

Yes, we have Social Security income. I understood that Capital Gains don't change your tax bracket.

Re: Capital Gains if Estimated Taxes Paid

Mike9241 — Sun, 13 Feb 2022 07:07:09 GMT

it can. in the turbotax file there is a qualified dividend and capital gain worksheet where the tax is calculated.