Error in 1040 Schedule D 2020?

Forum|Forum|5 years ago
February 28, 2021
1 reply
19 views

In Line 16, lines 7 and 15 are combined. If it is a gain, then we put the result in Line 7. So, Line 7 does not distinguish short-term or long-term capital gain.

TurboTax checked "yes" in Line 20. But I didn't find "Qualified Dividend and Capital Gain Tax Worksheet" filled.

Mike9241

Level 15

what are you doing? you enter capital gains/losses through a 1099-B worksheet or if your broker partners with TurboTax you can import the info. the transactions then show up on forms 8949. TurboTax sorts out the short and long-term items. the short-term items are then carried to Part 1 of Schedule D and the long-term are carried to Part 2. you should not override entries on schedule D. doing so will prevent you from e-filing.

line 16 is a total/net of lines 7 and 15. if there are net Long-term gains the Long-term gain and qual div wks is generated. if the losses net to short-term and there are no qualified dividends the wks is not generated.

Mike9241

wxj6000Author

Level 2

I filled 1040 with TurboTax. But I don't understand why my long-term capital gain and qualified dividend are taxed with long-term capital gain rate.

In part III of Schedule D, the long-term capital gain and short-term capital gain are simply combined in Line 16, then put the sum in 1040. My net long-term gains is positive, but no long-term gain and qualified dividend worksheet is generated.

I wonder if this is a bug in TurboTax.

wswyr11

Level 2

I had this same thing happen. Did this ever get resolved? It does seem like the Qualified Dividend and Capital Gain Tax Worksheet is missing, and my long-term capital gains were included with short-term and taxed as such.

Edit/Update: I did the math myself and the long term rate was factored in, just wasn't called out anywhere