Tax Calculation

Forum|Forum|1 year ago
February 12, 2025
1 reply
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I (as others) am seeing an issue with TurboTax calculating the tax as it relates to my taxable income. I have a spreadsheet set up to calculate the tax via the tax brackets and I also did it using the other method of taking your taxable income multiplied by the bracket percentage, and minusing the constant in the table. Those two methods come up with the same number. But, the TurboTax calculation for line 16 is $58 less. Not a big difference, but my expectations are they should all be the same...so why is TurboTax not the same??

Best answer by VolvoGirl

See

https://ttlc.intuit.com/community/forms/help/form-1040-line-11-amount-is-less-than-standard-irs-tax-table/00/25752

Even though it shows up as income on the first page,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. And you will need to use this IRS worksheet on page 15.

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf