Long Term capital gains double counted

Forum|Forum|2 months ago
March 24, 2026
2 replies
13 views

so just finished my taxes, but it appears that my long-term capital gains are being counted in schedule D both on their own and also with the short term, capital gains. Double checked, and all the entries are correct anyone else having this problem?

on a related note capital gains are only supposed to be tax at 15% but it appears they’re being taxed at my normal tax rate. How do I check to make sure they’re not taxing my long-term capital gains incorrectly?

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baldietax

Level 12

can you provide more info what you mean. Schedule D will show short term and long term cap gains separately and then the combined total which goes to the 1040.

tax calculation is not done on tax tables based on the taxable income shown on your 1040 which combines all income - the calculation is done on the "Qualified Dividends and Capital Gain Tax Worksheet" which separates the LTCG and Qualified Divs for tax calculation at 0/15/20% and the remainder is taxed using the tax tables.

Mark ChekalAuthor

Level 2

I entered all my 1099-B data (long and short term cap gains) as well as 1099-DIV.

The long term capital gains were double counted on schedule B, both in short term and long term, then double reported as well on 1040 increasing my AGI.

ThomasM125

Level 15

It is not likely that investment sales reflecting long-term gains could show in the short-term gain section of Schedule D without there being errant entries during the Form 1099-B entries. I suggest you review you investment sale entries and focus on the ones that list dates that reflect short-term sales of one year or less. There must be long-term sales entered incorrectly as short-term sales. If you find duplicate entries, you need to delete them.

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AnnetteB6

Level 15

As mentioned by user baldietax, capital gains tax is calculated on a separate worksheet (Qualified Dividends and Capital Gains Tax Worksheet) that applies that lower tax rate to the capital gains. Without going into great detail, this worksheet separates your capital gains from the rest of your income and applies the capital gains rate to the capital gains income (which is lower than the ordinary income tax rate). Then your total tax amount is reported on Form 1040 line 16.

You can see this worksheet by using Forms in the upper right corner of the TurboTax desktop version, or by looking for it when printing your return if using TurboTax Online.

When you look at this worksheet, pay attention to lines 23 and 24. The tax calculated on line 23 takes into account the capital gains tax. The tax calculated on line 24 comes directly from the tax tables. Then, the lesser of those two lines is reported on line 25 and Form 1040 line 16. Therefore, if the capital gains tax rate gives you a lower overall tax, then that is the tax on your Form 1040.

@Mark Chekal

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