Long Term capital gains double counted

[Mark Chekal]

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? 

[baldietax]

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.

[AnnetteB6]

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 

[Mark Chekal]

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]

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.

[aredman01]

I am getting the same doubling problem of my long term capital gains.  The data transfer from my broker is correct but the program appears to be malfunctioning   

[DianeW777]

As indicated, it's not likely they are duplicated on your tax return. The only reason this might happen is if the income was imported twice by mistake, which can happen easily. Review your tax return carefully to check your entries. First check the Schedule D with your 1099-Bs to check the total gross proceeds, including short and long term. Then check  Schedule B with your 1099-INTs and 1099-DIVs.

Next look at your Qualified Dividends and Capital Gains Tax Worksheet to see the amount of capital gains being used to calculate your tax on just that portion of income (1099-Bs and possibly qualified dividends from 1099-DIV). 

@aredman01 

[aredman01]

I have already double checked all these inputs.  My inputs are correct. The mistake is in your program.  You have a bad BUG!  I was a programmer brfore I retired and I am telling you that your prrogram has the problem. It is posting Capital gains form sale of stock in a space intended for capital gains DISTRIBUTIONS from Interest and 

Dividends.  Your users are not always wrong.  Sometimes the problem is yours.  Contact your technical people and LOOK FOR IT1   If this really is happening with multiple users and they don't find out before it is too late and they file, their taxes could be almost doubled.  You are going to be paying many people a lot of money for the mistake.  At least stop to consider that it may not be the users' mistake.  

aredman01.  

[AnnetteB6]

In order to take a closer look at the situation you described and forward it to the development team, they will need a diagnostic tax data file demonstrating the circumstance.  If you would be willing to provide a diagnostic copy of your return, that would be helpful.  The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  

To provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

If you are using a Mac version of TurboTax, use these steps:

• Go to the Menu at the top of the screen and select Help.
• Then, Send Tax File to Agent.
• Post the token number here.

@Mark Chekal 

@aredman01 

[mclag1]

I am having the same problem.  The program enters all my trades as imported directly from my brokerage (Stifel) and calculates the capital gains total correctly.  It then also imports the amount from box 2a on my form 1099 from the brokerage and puts it on line 13 of schedule D, but then this gets added to the capital gains already entered in line 8a-10.  It's the same information entered twice and they get added together, doubling the total.

[mclag1]

Actually, I think I made a mistake.  Never mind.

[MarilynG1]

You could delete the entry populating Line 13 on your Schedule D (most likely from a 1099-Div) as it may have been duplicated in the trades previously imported, especially if you had a Consolidated 1099.

@mclag1