Should my capital gains of 9888 be treated as ordinary income as my return shows?

[richard_hunter]

it never breaks it from ordinary income!

[Ashby · Accepted solution]

It sounds like the gain is being treated as short term (less than 1 year held). If that is the case, they do get treated as ordinary income. If not, my advice is to revisit the sale(s) that created the gain and make sure the correct dates are entered so that it will be treated as long term.

[VolvoGirl]

Even though the full amount shows up as income on the 1040 as income, if you have capital gains or qualified dividends the tax on line 11 is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.  In the online version you need to save your return as a pdf file and include all worksheets to see it.  

[Ashby]

@VolvoGirl @richard_hunter Volvo is correct and if you want to see that it is broken out as a "different income" as capital gains, you can view that on Schedule 1, Line 13.

[richard_hunter]

the amount 9888 times .15 equals 1483 which should go to ordinary income but turbo uses the 9888!

[VolvoGirl]

The whole gross amount is income and counts for other things on your return.  The 15% would be the tax.

[Ashby]

The $1483 would be the amount of tax, not the amount of ordinary income. So, your ordinary income would be taxed at your applicable tax rates and then the $1483 would get lumped in to your total tax figure.

[richard_hunter]

always in the past the 1483 would be added into the AGI not the 9888 whats changed?