Do I have to pay capital gain tax on sale of land if I am over 65 and make less than 70,000(Married filing joint)

[boydsdolls]

My profit was 13,000.

[DanaB27]

No, if your total income, including the gain, is less than $70,000 and you held the land longer than one year then you will not have to pay capital gains tax on the profit.

A capital gain is taxed at 0% if your taxable income is less than or equal to $80,800 for married filing jointly (IRS).

[boydsdolls]

Then how do I report on my federal tax as 0.  When I key in the net gain 13,000.  It is showing I owe on that?  Do I have to report gain on my Pa State tax?  Thank you.

[Vanessa A]

When you enter your sale, TurboTax will automatically calculate that your federal tax is $0.  

Yes, you  need to report the gain on your PA tax return.  PA classifies capital gains sales are considered dividends and are taxed at the flat income tax rate of 3.07%.

[boydsdolls]

Turbo tax is not deducting the 13,000 profit from my income.  I have called twice and a support #17155 is suppose to be reviewing,  Very frustrated.  When will this  be resolved so I can file taxes.

[JamesG1]

It sounds like your investment is correctly reported on a Qualified dividends and Capital Gain Tax Worksheet at the 0% tax rate.

The form can be viewed here at page D16.

The worksheet can be viewed at Tax Tools / Print Center / Print, save or preview this year’s return / Include government and TurboTax worksheets.