Question

Error in Calculated Tax

Forum|Forum|3 years ago
January 27, 2023
2 replies
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Using 1040-SR, for a taxable income of $2,176,918, married filing a joint return, I calculated federal tax using the published IRS 2022 tax tables and get $740,008.66, but turbo tax calculates it to be $739,296. Which number is correct?

B

Bsch4477

Employee

Did you have qualified dividends or long term capital gains?

VolvoGirl

Employee

It depends on what kind of income you have. There are like 7 different ways to figure the tax.

See the IRS worksheet on 1040 page 36 for how the tax is figured. Turbo Tax uses the same worksheet.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

If you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return.

In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.