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Capital Gains Tax Computation in Turbo Tax Deluxe show tax applied but income below the level to have the tax apply

If a couple filing jointly has a 2020 income below $75k and has a long term capital gain of $60k there should not be a CG tax applied but in TT Deluxe it applies a tax, is this correct?

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Capital Gains Tax Computation in Turbo Tax Deluxe show tax applied but income below the level to have the tax apply

Well, you'd need to make clear whether that 60k is included in that 75k or not.

 

if you had (say) 70k of income PLUS another 60K of LT gain  (130k total), then it might be taxed.  depends on what is on line 15 of your Federal form 1040..

 

IF you have the desktop version, you can see the calculations on the worksheet...but which one...check your form 1040 worksheet, and just under line 15, there is a list of tax computation forms, and the one used for your tax return will be "X"d...then you can find that form and open it to see what's involved.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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2 Replies

Capital Gains Tax Computation in Turbo Tax Deluxe show tax applied but income below the level to have the tax apply

Well, you'd need to make clear whether that 60k is included in that 75k or not.

 

if you had (say) 70k of income PLUS another 60K of LT gain  (130k total), then it might be taxed.  depends on what is on line 15 of your Federal form 1040..

 

IF you have the desktop version, you can see the calculations on the worksheet...but which one...check your form 1040 worksheet, and just under line 15, there is a list of tax computation forms, and the one used for your tax return will be "X"d...then you can find that form and open it to see what's involved.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

Capital Gains Tax Computation in Turbo Tax Deluxe show tax applied but income below the level to have the tax apply

Thank you for your quick reply, it did answer my question.

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