My federal tax due increased by 25% of my long-term capital gain from selling stocks, instead of the max rate of 20%. Why?

To determine what tax rate is actually applied to the capital gains on your federal tax return, you would have to review the Qualified Dividends and Capital Gain Tax Worksheet (after paying to download/print) if it is included in your federal tax return.

However, you may determine if the worksheet is included in your federal tax return (before paying) by previewing Form 1040 using the following instructions and seeing if Qualified Dividends and Capital Gain Tax Worksheet is checked under Form 1040 Line 43 under Tax Smart Worksheet: How do I preview my TurboTax Online return before filing?

If the Qualified Dividends and Capital Gain Tax Worksheet is not included in your federal tax return, you should review how you entered stock sales and ensure you selected the appropriate sale category. Please review the following link(s) and the link(s) embedded on the webpage(s) for more information:

• What is Form 1099-B - Proceeds from Broker Transactions?
• Where do I enter a 1099-B?

You should also note if any additional taxes are reported on your federal tax return (Form 1040 Lines 45-46, 57-63). For example, TurboTax may automatically calculate and include IRS Form 6251, Alternative Minimum Tax - Individuals, IRS Form 8959, Additional Medicare Tax and IRS Form 8960, Net Investment Income Tax Individuals, Estates, and Trusts in your federal tax return, if applicable. You may determine if these forms are included in your federal tax return using the following instructions (but don't actually delete forms): How do I delete forms in TurboTax Online?

Please review the following link(s) and the link(s) embedded on the webpage(s) for more information:

• What is the Alternative Minimum Tax (AMT)?
• Why am I getting hit with the AMT (Alternative Minimum Tax)?
• What Is IRS Form 6251?
• What is Form 8959?
• What is Form 8960?