ScheduleD

[gdahlin]

I'm in the 0% long term tax bracket, but when I enter stock sales information in the Capital Asset Sales Entry Worksheet (gains totaling $7,500), TurboTax increases the overall tax owed (for 2025).  Am I entering the data in incorrectly?  I haven't had capital gains before.  Thanks for helping!

[rjs]

Entering stock sales in forms mode is difficult, confusing, and error-prone. Delete the sales that you entered and try entering the sales in the Step-by-Step interview.

[gdahlin]

Thanks, will do!

[rjs]

Note that the tax brackets for long-term capital gain are based on your total taxable income, including both the capital gain and all other taxable income. For 2025 taxable income is on Form 1040 line 15.

[DianeW777]

When you have long term stock sales, and they are below the threshold as you indicate, then your capital gains tax on this amount should be zero.  See the threshold levels below.   Entering them in the Step-by-Step as indicated by @rjs may eliminate your experience.

• Where do I enter investment sales?

IRS Tax Topic 409

A capital gains rate of 0% applies if your taxable income is less than or equal to:

• $48,350 for single and married filing separately;
• $96,700 for married filing jointly and qualifying surviving spouse; and
• $64,750 for head of household.

A capital gains rate of 15% applies if your taxable income is:

• more than $48,350 but less than or equal to $533,400 for single;
• more than $48,350 but less than or equal to $300,000 for married filing separately;
• more than $96,700 but less than or equal to $600,050 for married filing jointly and qualifying surviving spouse; and
• more than $64,750 but less than or equal to $566,700 for head of household.

@gdahlin