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

[onestop73]

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.

[The-Tax-Lady]

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

[sjrcpa · Accepted solution]

 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