Help requested with taxes
OK, I'm sure I'm just doing something simple wrong here, but I've gone over the worksheet several times and can't figure it out. Help!
2008 federal taxes, trying to calculate form 1040 line 44.
Filling out the Qualified Dividends and Capital Gain Tax Worksheet on page 38 of the form 1040 instructions as directed by schedule D line 22 and the form 1040 instructions, page 37.
Form 1040 line 43 is $20,976
Form 1040 line 9b is $170.09
Filing status single
STCL on Schedule D of $3,770 (reduced to $3,000 on line 21 of schedule D)
So I'm walking through the worksheet on page 38 and get:
3. Yes. Line 16 is a loss -> $0
9. No. $20805.91
11. Yes. Goto line 15
OK, I'm at line 16 and it tells me to add lines 14 and 15. But I didn't fill in line 14 because of the instructions on line 11.
If I assume zero, and continue, then line 18 will end up being $2,723, which would imply that the qualified capital gains would be taxed at 0%.
Wait, is that it? In this case is the person's income so low that their capital gains are taxed at 0%? Weird, but nice.
Any help appreciated.
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.