Here are a couple of reasons that your tax rate may be 0% on over $20,000 in taxable income: Your return includes credits such as the Child Tax Credit, Earned Income Credit, Dependent Care Credit, etc. that wipe out your tax Your income includes qualified dividends, long term capital gains, and/or capital gain distributions from a mutual fund which are taxed at lower rates than ordinary income (starting at 0% for up to $48,350 of taxable income if you are filing as Single)Please post back if none of these apply so that we can assist you further.

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karl-henize

Question

It seems that Turbo Tax has calculated a tax rate of 0% on over $20,000 in taxable income. This seems like an calculation error. What could have caused this error?

Forum|Forum|1 year ago
April 13, 2025
1 reply
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No text available

RachelW33

Here are a couple of reasons that your tax rate may be 0% on over $20,000 in taxable income:

Your return includes credits such as the Child Tax Credit, Earned Income Credit, Dependent Care Credit, etc. that wipe out your tax
Your income includes qualified dividends, long term capital gains, and/or capital gain distributions from a mutual fund which are taxed at lower rates than ordinary income (starting at 0% for up to $48,350 of taxable income if you are filing as Single)

Please post back if none of these apply so that we can assist you further.

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