Question

WHY My AGI is $18,798. Turbo shows Blended tax rate of 0%, Tax Liability of $0. Looking at Fed Tax tables, my liability should be $250. Why is Turbo saying $0?

Forum|Forum|5 years ago
April 15, 2021
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TurboTax Premier Online

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.