Cap Gains limited to 15% where?

The capital gains distributions are taxed at 15%. The calculation is completed on a separate worksheet which feeds to line 44 and is not included with the filed return. I can't speak for OH, but most states tax capital gains at the same rates as all other income. Ira Smilovitz

You are missing something. All your income, of all types, is added together on the first page of Form 1040. This has nothing to do with the tax rate that is applied.

Yes. The tax is calculated on a worksheet that applies the appropriate rates to different types of income. Look at the Tax Smart Worksheet in between lines 43 and 44 of Form 1040. One box will be checked to indicate what method was used to calculate your tax. You will probably find that it is the Qualified Dividends and Capital Gain Tax Worksheet. If you look at that worksheet you will see different rates being applied to ordinary income and capital gains. Bob Sandler

That's correct if you had no actual stock sales that year and no loss carryover.

Just wait ...

Yep.

Yep. Go to line 43 (that's your taxable income). Look up the tax on that amount by using the tax tables. Compare to line 44. If line 44 is not equal to the amount in the tax tables, then not all of your income was taxed as ordinary income.

Sounds like you have some downloading to do! Look for the capital gains worksheet on page 38 of the 1040 instructions.

-- Don EA in Upstate NY

Try using the HELP key more often. Many such programs have line-by- line and topical help capabilities.

required'' checked. (Turbotax picked up the

Or, it obtains the information from your 1099-DIV from that fund.

You are.

Yes

Yes, see the line instructions for line 44. Actually you need the instructions on page 36 of the 1040 book to calculate the correct amount of tax. In other words, you DON'T use the Tax Tables to figure the tax liability (and neither does TT).

It doesn't have to be that way. ALL forms and instructions can be downloaded (and printed) from the IRS website

required'' checked. (Turbotax picked up the

The step you are missing is calculating your tax on line 44. You need to use the worksheet to calculate your tax because of your capital gains distribution. See pages 36-38 of the instructions for Form 1040:

A long lost voice from the past!

OK - Ohio does not have any special tax treatment for capital gains, so Ohio taxes capital gains just like any other ordinary income. What you are missing is the computation of your income tax. The capital gains that shows up on Form 1040 Line 13 gets added to all other income, and eventually is part of the Line 43 Taxable Income. The tax gets calculated on Form 1040 Line 44. The question you are actually asking is how to calculate your income tax. Look at the Form 1040 instructions,

on page 38 you need to fill out the qualified dividendsand capital gains worksheet. Line 15 of that worksheet is where your capital gains get taxed at only 15%. That worksheet allocates your taxable income between 5% capital gains rate, 15% cap gains rate, and other income.

You are. When there are net long-term capital gains and/or qualified dividends, you use the "Qualified Dividend and Long Term Capital Gain Worksheet" to compute your tax instead of the tax tables. This worksheet implements the 15% rule. Poke around in TT and see if it shows this computation anywhere. Presumably it does.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us