Why is TurboTax calculating a tax for my long term capital gains even though I should be in the 0% tax bracket. I'm filing jointly, our income is below 80k, and the stock was owned for more than a year.
Review your Capital Gains Worksheet to see how your capital gain was calculated.
Per IRS: The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.
A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450 for single; $496,600 for married filing jointly or qualifying widow(er); $469,050 for head of household, or $248,300 for married filing separately.
However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
There are a few other exceptions where capital gains may be taxed at rates greater than 20%:
Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.
Review your Capital Gains Worksheet to see how your capital gain was calculated.
Per IRS: The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.
A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450 for single; $496,600 for married filing jointly or qualifying widow(er); $469,050 for head of household, or $248,300 for married filing separately.
However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
There are a few other exceptions where capital gains may be taxed at rates greater than 20%:
Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.