Capital Gain from Long Term Stock Sale is calculated to be at 18.9 % instead of 15%

[thuyanhtax]

Turbo Tax seems to calculate capital gain from my long term stock sales wrong.  I compare the "Federal Tax  Due" from before I enter the capital gain versus that of after capital gain,  it shows that capital gain is taxed at about 18.9% rather than 15%.   Does Turbo Tax have issues in calculating capital gain tax?

[NCperson]

how high is your income? there is the 3.8% net investment income tax for incomes above  $200,000 (single) / $250,000 (joint).

see form 8960.

is that the issue? 

[thuyanhtax]

My income range is between less than $400 K.

According to the tax rule, I should be taxed at 15% for my long term capital gain, but Turbo Tax results in 18.9%. 

[NCperson]

My income range is between less than $400 K.

can you please clarify what that statement above means? 

 as I stated, if you income is over $200,000 (single) or $250,000 (joint) there is an additional 3.8% tax.  That is the tax rule. 

otherwise, are you losing any tax credits by entering the capital gain? 

[thuyanhtax]

To clarify, My total income is $400,000.  This includes around $300,000 for earned income from wages, retirement income..., and $100,000 for net investment income from dividents, and long term gain from stock sales.   My income is below the threshold so am not sure as why Turbo Tax calculated my capital gain at 18.9% instead of 15%.

[NCperson]

your income is ABOVE the threshold - why do you think it is below?

the threshold is $200,000 of TOTAL income (single) or $250,000 (joint).,,, the threshold is NOT investment income alone

You pay 3.8% of all investment income (so the $100,000). look at form 8960 and I suspect you will about $3800 on line 17 for the tax; the threshold is calculated on lines 13-15. 

does that help?