Long term capital gain

Forum|Forum|3 years ago
February 9, 2023
2 replies
0 views

Hi,

For the long term capital again for $3829 , TurboTax taking off $911 (24%) from my refund .

For long term it should be 15% , not sure why they are considering the long term as short term . I called their support also , but no answer for my question. can any one answer

ThomasM125

The capital gains may be affecting deductions, such as a qualified business income (QBI) deduction. The QBI deduction can apply to business and partnership (K-1 form) income. Such a deduction would be reduced if you report capital gains. There could also be other similar things going on. I suggest you look at your form 1040 before and after you enter the capital gain and see what changes in addition to the capital gain income and income tax.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Mike9241

look at the cap gain and qual div worksheet where the tax on capital gains and qualified dividends are computed. more income can also reduce deductions, create a net investment income tax and or alternative minimum tax.

gobipat1Author

Hi,

Thanks for your reply .I check the sheet and its showing 15% $586 , but I was wondering before adding the Long term capital again for $3829 , my refund was $4624 , after adding my capital again refund was reduce to $3713.

what might be the reason instead of deducting $586 from refund , it deducted $911