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March 7, 2025
Question

TurboTax doesn't seem to be calculating long term capital gains correctly. It tells me that everything is being taxed at 20%.

  • March 7, 2025
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    1 reply

    March 7, 2025

    A capital gains rate of 20% applies if taxable income exceeds the thresholds showing below:

    •  $518,900 for single;
    •  $291,850 for married filing separately;
    •  $583,750 for married filing jointly and qualifying surviving spouse; and
    •  $551,350 for head of household.

    irs.gov

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    March 7, 2025

    Shouldn't the program be taxing 15% for everything under $518,900, and 20% for everything over? Thanks!