Why are my capital gains calculating as taxable when we are well below the 83k threshold for Married Filing Jointly?

Forum|Forum|3 years ago
February 27, 2023
2 replies
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RESOLVED: The issue was that the increased income from the LTG, though not directly taxable, increased total income which impacted our ACA subsidy. That reduction resulted in the inclusion of the LTG triggering a change in tax owed. Thank you.

TurboTax Premier Online

Bsch4477

Employee

Are you below that threshold when your capital gains are added to your other income?

LT177Author

Yes. Total income = 56k and that includes the 11k in long term gains that are being taxed by the online program.

Bsch4477

Employee

Agree that is not right. Call TurboTax.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9ZKpQB_US_en_US?uid=len6u3ig

AmeliesUncle

Are they long-term capital gains?
Was it from selling property that was depreciation (such as for a business or rental)?
In tax-terminology, they are still "taxable" and show up as income, even if the tax rate is 0%.
Does the actual income tax on line 16 of Form 1040 increase from the capital gain?
Even if the capital gains are taxed at 0% (so the tax on line 16 does not increase), that 'extra' $11,000 could affect other things on your tax return, which could lower your refund or cause you to owe more.