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Level 4
April 22, 2020
Solved

Why is the system using tax worksheet item 4, Qualified Dividends & capital gain tax worksheet instead of Tax table?

  • April 22, 2020
  • 2 replies
  • 17 views

Hello,

Seeking a bit more understanding why the taxable income of $83K which includes gain (boot) and other; only calculated tax of $759? Am I suppose to override something to trigger overall tax? Does this sound right to have taxable income of $83k and the system only calculated $759 tax? Thank you in advance.

 

 

 

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Best answer by sjrcpa

 Look at the worksheet and follow the calculation. Long-term capital gains are generally taxed at lower rates than ordinary income. Been that way for a number of years

2 replies

Level 8
April 22, 2020

Capital gains can trigger all the income to be taxed at the Capital gains tax rate which starts at Zero.

sjrcpa
sjrcpaAnswer
Level 15
April 22, 2020

 Look at the worksheet and follow the calculation. Long-term capital gains are generally taxed at lower rates than ordinary income. Been that way for a number of years

The more I know the more I don’t know.