When I go to the Capital Gains section, it says that I would pay 15% taxes. But that doesn't match what I owe, which is twice as much. What am I not understanding?

[msbz123]

Thank you for all of your help!

[msbz123]

Thanks again for your help.

I made it work, with many problems, and filed my taxes. Partly so I could just see the numbers and see if I really had some problem with the capital gains being over-taxed. 

So now I have the forms but I can't find the worksheet you're talking about. I downloaded the tax return but looked through the various forms and did some searches, and the worksheet didn't come up. 

So I am still confused as to if I have a mistake or not with the capital gains tax amount.

What would you suggest?

[KrisD15]

You have a copy of your Form 1040 tax return. Your tax return should include Schedule 1. 

Look at schedule 1 and tell us what is reported and on which line. 

[msbz123]

From my schedule 1:

Line 3: -5,475

Line 5: 74

Line 10: -5,401

I thought that capital gains and dividends were taxed once, at a different rate. But it looks like ours was added to our income. Am I misunderstanding how this works?

[MonikaK1]

The effect of capital gains on your taxes also depends on whether your capital gains were short-term or long-term. See your Schedule D. When your short-term gains exceed your short-term losses, you pay tax on the net gain at the same ordinary income tax rates you pay on most of your other income, such as your wages or interest income. See this TurboTax Tips article for more information.

Check also to see if you have any Additional Taxes on Schedule 2, which carry over to Line 23 of Form 1040.

@msbz123 

[msbz123]

These were almost all long-term gains. Line 23 on my 1040 from schedule 2 is only 987. 

I just can't figure out what's happening here.

[SusanY1]

Earlier you mentioned seeing a 529 distribution as income.  Is that still showing? That could be the source of the extra tax.  

If all of the 529 distribution was used to pay qualified expenses, return to the entry section for 1099-Q and delete it entirely.  Does that fix the problem?  If you have already transmitted your return to the IRS, don't do this without first starting an amended return.  Instructions to do that can be found HERE.

[msbz123]

I saw that suggestion from another person earlier in this thread and tried it. So it wasn't the 529 distribution as I removed that (I did have enough valid expenses for the 529 distribution).

[SusanY1]

I can take a look to see if I can find the explanation. However, I need a diagnostic file, which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.  (Screenshots work best, if possible.)

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.  (Screenshots work best, if possible.)

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[msbz123]

I have already filed my taxes, partly in order to figure out this very situation.

But now I can't see the tax tools. I'm on a Mac using TurboTax online - is there any way to do this differently?

[SusanY1]

In Mac you will go to Help from the menu at the top and select Send File to Agent. 

[msbz123]

I filed already so I no longer have access to tools. I just spoke with someone at Inuit to see how else I could send a file to an agent and there is apparently no way to do this once you file. Do you know of another way?

[VolvoGirl]

Click on Add a State to let you back into your return. 

[msbz123]

That worked! Thank you so much.

The token is 1299530.

[SusanY1]

On the Form 1040 where it shows "tax" it just shows the sum of all of your tax, which does make it a little more difficult to understand. 

The Qualified Dividends and Capital Gains Worksheet should be viewable by you when you download the copy of your return that is all forms and worksheets.  

Selecting those options will generate a PDF that will include the worksheet that shows how much tax you pay on the dividends and capital gains.  In the copy I can view, it does show the 15% rate applied. 

This worksheet will also show you that the same income taxed at this lower rate is removed before the tax on your other income is added into the total. 

You will get to this worksheet by following VolvoGirl's instructions to get back to the Tax Tools and then go to Print Center.