Question

No Tax on Taxable Income?

Forum|Forum|6 years ago
March 28, 2020
1 reply
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I am assisting my in-laws with their taxes this year and am seeing a value in line 11b "Taxable income", but line 12a "Tax" is showing zero (0). Is this correct? They are over 65, so it is 2019 form 1040-SR.

Thank you.

A

Anonymous

it's possible if their taxable income conssited solely of qualified dividends and/or long term capital gains. if so ther eshould be a worksheet in the return calculating the tax

another thing to look at is on 12a is ther a box checked or form listed. normally the lowest tax rate is 10% on taxable income