Question

Turbotax is calculating my 2020 federal taxes owed at a far lower number than if I calculate by hand. I have earned income and short term capital gains. Anyone else?

Forum|Forum|5 years ago
January 27, 2021
1 reply
0 views

Is there a worksheet where I can see Turbotax's exact calculations for taxed owed (i.e. how it flows through the brackets?)

TurboTax Premier Online

macuser_22

Employee

If you have capital gains the the tax tables are not used, the "Qualified Dividend and Capital Gain Tax Worksheet" is used that will result in a lower tax.

If you want to do the calculations yourself then the worksheet is in the IRS 1040 instructions.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf page 35

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

W

wlevitt94558Author

Is that still true even if my capital gains are short term? Since the realized gains are short term, shouldn't they be taxes as part of my ordinary/earned income?