it looked like all of the long term gains dropped out before the value was added back into your normal income.

none of your LT capital gains will "contribute" to your "wages income" which is taxed according to your marginal "tax bracket."

however, all of your (net) LT capital gains DO contribute to your total AGI (adjusted gross income) which is used to determine which Tax Bracket you fall into.

So... your LT cap gains are all taxed at the LT cap gains tax rate, but your wages-income/ST cap gains are taxed at rate that DOES depend on the amount of LT cap gains reported on the same 1040.

Clear ?

- D