I made a copy of my 2023 return, in TurboTax. And did the same for my girlfriend. We are both single and both of our taxable incomes are well below the 20% threshold for LT capital gains. In each of the copies, I increased the proceeds from one long-term stock sale by $100,000 to see the impact on taxes. I expected the impact to be $15,000. It was not. It was $18,956 in one case and $18,920 in the other.
So next I tried increasing the proceeds of that same long-term stock sale by only $50,000, and the tax increased by $9,556 and $9,239, respectively.
Can someone shed some light on why it seems that TurboTax is taxing these long-term capital gains at roughly 19% and not 15%
I'm thinking that the additional LT Capital Gains income is throwing some other element of our taxes into a higher bracket.... is that right? Which element(s) would that be
Thanks!
mjs
So next I tried increasing the proceeds of that same long-term stock sale by only $50,000, and the tax increased by $9,556 and $9,239, respectively.
Can someone shed some light on why it seems that TurboTax is taxing these long-term capital gains at roughly 19% and not 15%
I'm thinking that the additional LT Capital Gains income is throwing some other element of our taxes into a higher bracket.... is that right? Which element(s) would that be
Thanks!
mjs