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Is 2018 Fed tax due on 1040 line 10 income of $62,227.00 (joint return) $4,704 (your calculation) or $7,086.00 (my calculation)?

Forum|Forum|7 years ago
June 1, 2019
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Best answer by Texas Roger

The $19,854 of qualified dividends are taxed at 0% since the total taxable income is less than $77,200 which is the maximum for 0% tax on qualified dividends and long term capital gains. The tax on the remaining taxable ordinary income of $42,373 is $4,704 according to the IRS tax table for married filing jointly. The TurboTax calculation is correct.

T

Texas Roger

Employee

It depends on the source of the income. Some income is taxed at ordinary income tax rates and other income such as qualified dividends and long term capital gains is taxed at lower tax rates. How did you calculate your amount?

H

homenestAuthor

The $62,227.00 of line 10 taxable income includes$19,854.00 of "Qualified dividends"

T

Texas RogerAnswer

Employee

The $19,854 of qualified dividends are taxed at 0% since the total taxable income is less than $77,200 which is the maximum for 0% tax on qualified dividends and long term capital gains. The tax on the remaining taxable ordinary income of $42,373 is $4,704 according to the IRS tax table for married filing jointly. The TurboTax calculation is correct.