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twentw
New Member

Is Turbo Tax properly calculating tax on stock sale?

I sold stock last year.  Stock held more than a year is taxed at the capital gains rate (15%).  Without the stock sale, my effective tax rate is about 19%.  When I add the stock sale, my effective tax rate is exactly the same, which leads me to believe that Turbo Tax is not applying the 15% capital gains rate.  Is there any way to see how it's doing the calculation?

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3 Replies

Is Turbo Tax properly calculating tax on stock sale?

Please ignore the "effective tax rate" figures as they can be very confusing.  Instead save a PDF of the return with all the worksheets and  review the "Qualifying Dividends and Capital Gains Tax worksheet" to see exactly how the cap gain is being taxed.  

twentw
New Member

Is Turbo Tax properly calculating tax on stock sale?

It turned out to be an additional 3.8% Net Investment Income Tax that gets tacked on to the capital gains tax.  Thanks for your help.

Is Turbo Tax properly calculating tax on stock sale?

Ahh yes ... what I fondly  refer to as  the "NIT WIT" tax that was put into place to help pay for the "Obamacare" system.  

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