Getting charged taxes on qualified dividends

[High-Plains]

My federal tax due number changes when I change the value of the Qualified Dividend value. This should be taxed at the long term capital gain rate for my income level. It should be 0 for me. And yet when I zero out any of my qualified dividend values it changes my tax due number. Turbo Tax is taxing my qualified dividends but no one can tell me why. ????

Which Form 1040 income line  is used to determine the tax rate for long term capital gains?

[VolvoGirl]

But it is included in your total income which might affect any credits you are getting.

Even though it shows up as income on the first page,  if you have capital gains or qualified dividends the tax on line 12a is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.  In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

[Anonymous]

changing your qualified dividend amount will change your taxes.  they are included in total dividends. so if you had $5000 in total dividends and $5000 in qualified dividends. that's the same income.  you could be tax $0 on those.  remove the $5,000 in qualified dividends and your taxes go up.  there is a qual div /cap gain wks that computes your taxes when you have qualified dividends and/or long term capital gains. 

[High-Plains]

Hack,

This gives me some comfort that I'm not over paying (I'd view this as an egregious sin).

Thank you!

[High-Plains]

Rolls-Royce Girl

This gives me some comfort that I'm not over paying (I'd view this as an egregious sin).

 Thank you!