I owe capital gains on a property I sold in 2019, but Turbotax is not automatically deducting this from my return. How/when do I pay these taxes if Turbotax will not?

[AlanT222]

First, you must input the sale of the capital asset into TurboTax.  TurboTax will automatically calculate the gain and the capital gains tax for you.  It will be included in your overall tax on line 12a.  

[drummr25]

Thanks for the answer.  I can see that the overall tax line (12a) says zero, but TurboTax initially calculated exactly what cap gains I owed after I submitted the info about the sale of the house.  For some reason, things didn't automatically carry over within TurboTax to populate line 12a, or I missed a step to input this.  I wasn't sure of the process, and I filed yesterday (it was accepted), so it looks like I'll have to amend the return now.  WHERE do I input the sale of the asset? 

[JosephF8]

Where to enter the sale of the asset would depend on what the asset was to begin with. However before we get there you say line 12a is zero. Is there an amount in line 6? 

Capital Gain Tax Rates

[Hal_Al]

No piece of income is taxed individually. All your income, including capital gains*, is added together at tax filing time. The tax is calculated on that total (after adjustments and deductions).  Look at form 8949, if the sale is there, then it is included on your return.  The capital gains tax rate is 0% for people in the 12% (or lower) tax bracket. 

* A special worksheet (not a tax form) is used to calculate tax when you have capital gains. 

[drummr25]

Yes- there is an amount populated on line 6, but 12a and b are both zero.   And yes, I believe I'm above the 12% bracket...thoughts?

[drummr25]

Hal_Al:  Thanks for the form number to check- there is indeed a positive number there- it's over 15K.  I'm assuming this is what I needed to pay, but again...TurboTax did not deduct this.  Thoughts?

[JamesG1]

What is the number in 1040 line 6?  1040 lines 12a and 12b are both $0?

$15,000 is on form 8949?  On what line number?

[drummr25]

JamesG1:  Line 6 shows 16,547.  12a & 12b are showing zero.  On form 8949, it shows as a long-term transaction (box F is checked) and in section 1 box h shows the amount of 15,129.  I hope I'm ok by throwing my numbers out there...? 

[JosephF8]

If this is your only income, Long Term Capital Gains in the amount of $16,547, the tax on that is $0.

Capital Gain Tax Rates

[drummr25]

No- this isn’t my only income.. This amount  is only what’s associated with the sale of a house.  I have a regular W2 and other 1099’s, ect. 

[Hal_Al]

The $15,129 from form 8949 is (apparently) included in the $16,547 on lie 6 of form 1040.  So, you can be sure that TurboTax is calculating any tax due and including it on line 12b of form 1040.  

Yes, you're ok throwing your numbers out there.  That helps get to the answer.  What amount is on line 11b? If less than $40,125, then the tax on your long term capital gain is $0 (Single filing status).  It may be you just haven't entered your other income yet; so the amount on line 12b is premature.

[JamesG1]

Have you entered the W-2 income into TurboTax?

[drummr25]

Hal_Al- Line 11b is 11,949.  So you’re saying it appears I don’t owe anything? 

[Hal_Al]

Yes,that is correct.  Among your forms is a worksheet called "Qualified dividends and capital gains tax worksheet" showing the tax calculation.