Question

what is correct tax amount

Forum|Forum|5 years ago
March 18, 2021
1 reply
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I am filing for my mother-in-law on TurboTax. She is filing single and her taxable income is $17,603. Base on IRS 1040 and 1040-SR instructions 2020 Tax Table, should pay tax $1,918 but TurboTax calculated her tax $1,876. Should I be concern that later IRS found her filing short $42 and imposed penalty?

Thank you,

Zulfi B.

VolvoGirl

Employee

It depends on what kind of income you have, 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.

You can probably tell because the tax on 1040 will be less than the Tax Table

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