topic Turbotax 2019 calculated long term capital gain tax at 24% instead of 20% - wrong? in Investors & landlords

Turbotax 2019 calculated long term capital gain tax at 24% instead of 20% - wrong?

BornInChina — Mon, 12 Oct 2020 10:04:31 GMT

I am puzzled by Turbotax 2019 for home and business.

If I artificially remove a long term capital gain item (stock) by reporting sales proceed same as cost basis - the gain was $26733, my fed tax would drop $6436. It means TurboTax is calculating the rate on capital gain as 6436 / 26733 = 24%. It is supposed to be 20% at most.

I checked the imported 1099-B forms, those long term items are indeed marked as "L".

Checked Qualified Dividends and Capital Gain Tax worksheet. it appears 20% was used to calculate the capital gain tax.

But why the final result is 24%, instead of 20%...

Re: Turbotax 2019 calculated long term capital gain tax at 24% instead of 20% - wrong?

Critter-3 — Mon, 12 Oct 2020 11:54:53 GMT

Yeah ... your income must have also triggered the form 8960 which adds a 3.8% NIT.

Re: Turbotax 2019 calculated long term capital gain tax at 24% instead of 20% - wrong?

AmeliesUncle — Mon, 12 Oct 2020 17:51:08 GMT

@BornInChina wrote:
my fed tax would

But why the final result is 24%, instead of 20%...

You can't look at just one number. As Critter mentioned, adding income to the tax return can change MANY things, so you need to look at EXACTLY what on the tax returns changes. There is income tax, Alternative Minimum Tax, Net Investment Income Tax, Itemized deductions may be affect, and some credit and/or deductions may be reduced. And probably other things I have not thought of.