Why are they taxing my long term capital gains as income? When I enter into TT my tax liability goes up, but my AGI is about 60,000 so my tax rate should be 0 on LTCG

[allenstrong]

Same thing happened to me.  My tax liability went up when I entered in the long-term capital gains.  When I investigated (Federal Review tab/ 2024 tax breakdown) I discovered that the increased tax liability was for my Affortable Care Act premium increase.  Affortable Care Act premiums are based on MAGI which includes capital gains income.  In other words, the capital gains income lowered my health insurance premium tax credit...hence more tax liability.  Hope this helps.

[scapjm]

Thank you so much! I figured out what was causing the increased tax. We had a bit of capital losses. Before we entered the capital gain, the losses were a deduction to ordinary income. Before we entered the gain, those losses reduced the actual taxable income. But when we put the capital gain in, it shifted the capital loss to reduce the capital gain. so we lost that loss as a deduction. 😜

[mikez149]

I cannot find that form Qualified Dividends and Capital Gain Tax Worksheet in the listing of all my forms in turbotax. How do I find it?

[DoninGA]

@mikez149 If you are in Forms mode and you do not see Qual Div/Cap Gn on the left side of the screen then it was probably not used to calculate the taxes owed.

If you want to see the actual worksheet, click on Open Form at the top left of the Forms mode screen.  Type in qualified dividends, click on the highlighted result to open.