Our taxable income qualifies for 0% capital gains but when I did my return on Turbotax it showed I owed the capital gains what am I doing wrong? I used TT Premier

Forum|Forum|2 years ago
February 16, 2024
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Married filing joint incomes less taxable income after deduction under 90k

TurboTax Online

VolvoGirl

Employee

Where does it show the capital gains tax? There are like 7 different ways to calculate the tax.

It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from Schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all the worksheets to see it.

doughopkinsAuthor

When I completed the step by step instructions. I backed out of it because I didn't want to file it yet because I am hoping that it is wrong. We have income ( SS, Pension, interest, divs, and IRA dist ) of 78K after standard deduction. We sold a bunch of long term gains ($200k) thinking we would be under the 0% cap gains tax rate. It was showing I owed $30k to Fed . We withheld $10k and would normally owe just under that.