How is my long term capital gain taxed?

[Texas Roger · Accepted solution]

The tax rate varies depending on which ordinary income tax bracket you are in when including the capital gains amount. If you are below the 25% bracket, the long term capital gains tax is 0%. The 28%-35% bracket is 15% and the highest bracket is 20%.

[elwinleee]

I have $17000 long term uncovered capital gains (2017), however turbotax increase $4333 for my federal tax. It's obviously already exceed the max rate 20%.
Is turbotax doing something sucks?

[leilei9]

I have the same issue this year with TurboTax. But last year I didn't have this issue. my AJI is not in 20% LongTerm Capital gain bracket. Comparing 2017 with 2016, 3k income gain result in $6k more tax, which doesnt make any sense. I am also wondering if it is software error.

[nolan]

I have the same issue. TurboTax is applying  a 25% rate to my capital gains. Everything I read on line says it should be 15% or at most 20%.

[elwinleee]

Note, in our cases, we all pay more than 20%.

[jdoaksjr]

Help! This can't be right. I have long term capital gains but my income appears to be in the 0% bracket. My taxes have greatly increased. What should I do?

[Texas Roger]

You must add the amount of your capital gains to your ordinary income to determine your tax bracket.

[cfct]

MFJ with $40k income; $200k in LT Gains; $18k tax bill - why? WHAT about the "0% LT Gain rate under $77k income bracket?

[egmma09]

Same issue.  Regular income is less than $70k so long term cap gains tax should be 0.  Instead I am being taxed at regular income tax rates.  Is this a TurboTax glitch?

[Texas Roger]

If you want to see it calculated on another calculator, use this link and fill in your amounts: <a rel="nofollow" target="_blank" href="https://smartasset.com/investing/capital-gains-tax-calculator#7UuhiTkWHB">https://smartasset.com/inv...>

[DPH2023]

I used Turbo tax to file my tax with long term capital gain.  My filing status is Married filing jointly.  My taxable income is less than $400,000.  Hower, it seems that Turbo tax calculated my long term tax as 20%.  Based on Long term tax scheduel below, it should be 15%.  I hope you can help me understant the inconsistency. Thanks,

DPH2023

2022 Long-Term Capital Gains Tax Rates

Tax Rate	0%	15%	20%
Filing Status	Taxable Income
Single	Up to $41,675	$41,676 to $459,750	Over $459,750
Head of household	Up to $55,800	$55,801 to $488,500	Over $488,500
Married filing jointly	Up to $83,350	$83,351 to $517,200	Over $517,200
Married filing separately	Up to $41,675	$41,676 to $258,600	Over $258,600

[JamesG1]

Does your tax return contain a Qualified Dividends and Capital Gain Tax Worksheet (page 36) or a Schedule D Tax Worksheet (page D-16) to compute your income tax?

If it does:

• the Qualified Dividends and Capital Gain Tax Worksheet computes the 15% capital gain tax on line 18 and the 20% capital gain tax on line 21.
• the Schedule D Tax Worksheet computes the 15% capital gain tax on line 31 and the 20% capital gain tax on line 34.

On what lines is your capital gains tax computed?

@DPH2023