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February 22, 2024
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My taxable income is correct however the tax owed using the tax tables is different than shown on Turbo tax

  • February 22, 2024
  • 1 reply
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    Best answer by JohnW152

    The most likely answer is that you've entered qualified dividends and/or capital gains on your tax return.

     

    When these types of income are reported, taxes will not be calculated using the tax tables, but using either the Schedule D Tax Worksheet provided in the Instructions for Schedule D, or the Qualified Dividends and Capital Gains Tax Worksheet in the Instructions for Form 1040 and 1040-SR.

     

    These worksheets will result in lower taxes than the tax table or tax schedule -- sometimes even zero taxes.

     

    Please see the TurboTax Help article Why is my Form 1040, line 16 amount less than the standard IRS tax table? for more information.

    1 reply

    JohnW152Answer
    February 22, 2024

    The most likely answer is that you've entered qualified dividends and/or capital gains on your tax return.

     

    When these types of income are reported, taxes will not be calculated using the tax tables, but using either the Schedule D Tax Worksheet provided in the Instructions for Schedule D, or the Qualified Dividends and Capital Gains Tax Worksheet in the Instructions for Form 1040 and 1040-SR.

     

    These worksheets will result in lower taxes than the tax table or tax schedule -- sometimes even zero taxes.

     

    Please see the TurboTax Help article Why is my Form 1040, line 16 amount less than the standard IRS tax table? for more information.