Question about long term capital gains being taxed too high?

sokipdx
sokipdx Member Posts: 2 Newcomer
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Hi, I have a question about long term capital gains. I've prepared my 2024 tax return through FreeTaxUSA already, but haven't submitted it yet. I didn't have any long-term capital gains last year, but I was planning on selling some stocks this year and was curious to see how the taxes are calculated in FreeTaxUSA. I inputted the following numbers:

Proceeds: $14,433.63

Cost basis: $10,389.04

Long term capital gains: $4,044.59

Since I'm in the 15% capital gains tax bracket, I expected my federal taxes to increase by $606.69. However, it increased by $761. What am I missing?

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  • sokipdx
    sokipdx Member Posts: 2 Newcomer
    Answer ✓

    Edit: Figured it out, the extra 3.8% tax was due to net investment income tax (NIIT). I can see the calculations in Form 8960.

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