Long Term Capital Gain and AGI

[rjs]

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@soyuppy wrote:

LTCG does not change/affect your AGI.   

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@soyuppy 

That's not true. Long-term capital gain is included in AGI and in taxable income. When you enter long-term capital gain, it increases your AGI. Read the earlier replies above.

You did not do anything wrong in entering the long-term gain, but your interpretation of the results is wrong. The long-term capital gain does increase your AGI, and the increase in AGI affects other things in your tax return besides the tax on the long-term gain. The increase in AGI has side effects. The Qualified Dividends and Capital Gain Tax Worksheet is very complicated, but if you work through it slowly and carefully you will see that you are only paying 15% on the long-term capital gain. The additional increase in tax is because of the other things that are affected by the increase in AGI.

This has all been explained to you above. Again, read through the earlier replies more carefully.

[soyuppy]

Thanks for all clarifications/corrections.

So in short, capital gain, regardless of long term or short term, it will affect AGI.  and AGI will affect other tax credits, like AOTC or UCE.

The only other question to follow is how do I find out if the LCTG is taxed at different rate than ordinary income.

I see AGI increase by LCTG and I see tax increase  as well.  on the TTAX form, this is shown on how tax is determined.  Where/how can I find out how the 19644 come about?  I don't see the anything in the TTAX related to "Qualified Dividend and Capital Gain Tax worksheet"

[Critter-3]

In the forms mode look for that worksheet to view it in the window. 

[rjs]

On the Qualified Dividends and Capital Gain Tax Worksheet, note line 18, which applies the 15% rate to the long-term capital gain.

[soyuppy]

Yep, found the form and saw how total tax is calculated.  That for all the info.  I got all the answer needed.  I won't be responding to this thread anymore