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Level 1
June 1, 2019
Question

My taxable income for 2018 is 200,474. TT calculates my tax as 35,615. However, IRS 2018 tax computation worksheet says 36,693. Why the discrepancy?

  • June 1, 2019
  • 1 reply
  • 7 views
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1 reply

Level 8
June 1, 2019

Almost certainly, some of your income is from qualified dividends or long-term capital gains, which are taxed at a lower rate than ordinary income.  The tax computation worksheet is not used to calculate your tax.