Long term capital gain

Forum|Forum|6 years ago
February 29, 2020
5 replies
35 views

why is my $13000 long term capital gain being taxed? Total income is $30000. Shouldn't it be zero since it is less than $40000?

DanaB27

Employee Tax Expert

Yes, the long term capital gains rate is $0 for your tax bracket.

The $13,000 long term capital gain will be included in your taxable income. But the Qualified Dividends and Capital Gain Tax Worksheet is used to calculate the tax if you have qualified dividends or long term capital gains on your return.

You can preview your 1040 and see if the Qualified Dividends and Capital Gain Tax Worksheet was used when you scroll down to the "Tax Smart Worksheet".

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

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LazAuthor

Level 2

Thanks for the reply, DanaB27. The Qualified Dividends and Capital Gain Tax Worksheet is indeed filled out but the number at the bottom is not carried to line 12a on Form 1040. How can I force that?