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Level 2
February 23, 2021
Question

Qualified Dividends & Capital Gains Tax Worksheet

The qualified dividends are taxed at the reduced rate on the worksheet even when the election is made to include them in investment income. This appears to be incorrect.

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1 reply

BobKamman
Level 15
February 23, 2021

You mean the amount on Line 4g of the Form 4952?  It also has to be entered on Line 3 of the Schedule D Tax Worksheet, which I don't have in front of me at the moment.  Maybe that's a manual entry also.