Does anyone sees the same problem - my long term stock capital gain tax rate is calculated at >37%, I am using 2024 turbotax premier Mac.

[busseller]

For example - 2023-06-16 (acquired) 2024-09-13(sold) Long-term (Box E) $14,503.59 (proceeds) $8,704.00 (cost) $5,799.59 (gains) The calculated tax is ‎ 2,186 2186/5799.59 =0.377 I am in Seattle, Washington State

[ThomasM125]

I believe what you mean is when you enter the stock sale in TurboTax, your tax goes up by $2,186 and based on the capital gain on the sale, that would be a tax rate of 37.7%. What you're failing to take into consideration is that the increase in tax is not simply the tax on the capital gain income, but a consequence of the effect the additional income has on other things associated with your income tax.

You may have tax credits that are sensitive to increases in income, you may have alternative tax or investment tax issues that are affecting your total income tax when you add the gain from the stock sale to your tax return.

I suggest you look at your Form 1040 and schedules one to three before you add the additional income and after to see what changes. You will likely see other things that change in addition to the total income tax. 

To view your form 1040 and schedule 1 to 3:

1. Choose Tax Tools from your left menu bar in TurboTax Online while working in your program
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done 

After you pay for your TurboTax program you can see the forms and schedules in your return. You will see the Tax Smart Worksheet which will tell you where your tax is being calculated, which will show you that it is more than simply applying a tax rate to your taxable income:

[rjs]

How do you know the amount of tax that was calculated on a specific transaction? Did you look at the Qualified Dividends and Capital Gain Tax Worksheet to see what tax rate is being applied to the capital gain?

You can't go by the increase in the total tax on your tax return because adding income to a tax return can have side effects besides the direct tax on the added income. The increase in income could reduce or eliminate various deductions or credits that are not related to the income that was added, but that have income-based limits or phase-outs. If you received Social Security benefits it could make more of your Social Security taxable. These side effects increase your total tax, but they have nothing to do with the tax rate that is applied directly to the capital gains.

Why did you mention that you are in Seattle? Federal tax is the same throughout the country. Where you live does not affect your federal tax.

The tax is not calculated on individual transactions. It's calculated on your total income, and lower rates apply to the portion of your total income that is long-term capital gain. You can't determine what the tax rate is by looking at the increase in tax as a percentage of the amount of income. As I suggested above, you have to look at the Qualified Dividends and Capital Gain Tax Worksheet to see what tax rates are being used for long-term capital gains.

[baldietax]

in addition to what the others have said if you're getting the $2186 from the change in the tracker in the top left that could also include penalty if you haven't entered everything, estimated taxes etc.

Just switch to Forms mode to see the 1040 details including any penalty and "Qual Div/Cap Gn" worksheet suggested above has the calcs for the actual tax you should see your long term cap gain getting the appropriate rate and other things driving up the total due.