I was charged $454 capital gain tax even though I carried into 2024 tax year more than $200,000 in losses. I took the $3000 loss, but the $454 never got offsite.

Forum|Forum|10 months ago
May 26, 2025
2 replies
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Just to add, I was charged $454 2024 capital tax gain and it was charged as additional tax, it never got deducted. It should have zero'd out first

rjs

Employee

There is no separate capital gain tax. The income tax on capital gain is included in the total tax on Form 1040 line 16. Where exactly do you see $454 - on what form and what line of the form?

If you have -$3,000 on Form 1040 line 7, then you have a net capital loss and you are not paying tax on any capital gain.

VolvoGirl

Employee

Where are you seeing this additional tax? Did you get any 1099R forms? It maybe the 10% Early Withdrawal Penalty or excess accumulation penalty for not taking enough amount out for the RMD or contributing more than you are eligible for a IRA or 401K.

dr-nizami68Author

Let me make a correction, the amount is $339 and it appears on Line 12 as "net investment income tax". It's coming from line 17 on form 8960. This is tax owed on profit made in 2024. I thought because I carryover a very large loss from previous years, this amount would zero out and not get added as other tax on line 12. It appears it is a mistake in the system as it should have zero'd out.

rjs

Employee

Net Investment income for Form 8960 includes other things besides capital gain. It includes interest, dividends, annuities, royalties, and rents. None of those are canceled out by capital losses.