short term and long term capital gain question

[sjf123]

I have been filing tax myself for many years and I can never figure out  the short and long term capital gain difference while completing Schedule D.

I understand they are taxed differently with long term capital gains taxed with much lower rate. However, where is the place in the 1040 form or Schedule D  that can let you take a different tax rate?

I will use Schedule D of year 2020 as an example. Let's say I made short term  $10000 stock profit and I enter 10000 line line 7 on  Schedule D; and I made long term $10000 stock profile and I enter $10000 on line 15 on Schedule D; on line 16 of Schedule D, it will be $20000 and it goes to Line 7 on form 1040.  This $20000 will be the income, together with my wages etc.

So where is the place i can take the lower tax for this $10000 long term stock gain? By my above explanation, they are all taxed at the same rate after you go to line 16 on form 1040.  This is the question that have been bothering me for many many years. fortunately I basically don't have long term capital gain, but I might need to hold my stock long term if I can figure out how how long term capital gains are taxed when I file my 1040(schedule D) tax return.

Can anyone explain to me?

Thanks a lot.

[Bsch4477]

This is an old reply to your question from a Tubotax employee. 

The worksheet used to calculate your taxes when taking capital gains into account is found in the IRS Instructions for Form 1040.  It is called the Qualified Dividends and Captial Gains Tax Worksheet. 

You can find it on page 33 of the PDF document at this link:  2019 Form 1040 Instructions

[sjf123]

Thank you so much. This looks like it is a complicated process, not sure what is the tax rate for either short term or long term  capital gain tax rate, but i guess this complicated computation will make the long term capital gain taxed less than the short term capital gain. Again, appreciate very much for your reply.