Capitall gains

Why is Turbo tax counting Long term capital gains as income even though my taxable income on my 1040 is below $94050? I am MFJ.

posted

Capital gains taxes can be eliminated based on your income. That does not mean the actual capital gains is not reported on your tax return as taxable income.

The tax calculation does not apply the same tax rate to all of your income. If your total taxable income is $94,050 or less (for MFJ), the long-term capital gain portion of your income will be taxed at the 0% rate.