Turbo tax 2020 calculation error? Calculated $0 tax for taxable income of 14k

[PCarb]

This return has been filed and accepted.   This seems wrong.  The 2020 bracket is this:

$987.50 + 12% of the amount over $9,875

[DavidD66]

Please clarify, is $14K your taxable income or your adjusted gross income (AGI)?

[PCarb]

Taxable income is $14k.

[PCarb]

AGI is roughly $26k.

[VolvoGirl · Accepted solution]

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.

Is it zero tax on line 16 or zero tax due?  What lines and amounts are you asking about?

[PCarb]

The income was entirely Qualified Dividends and Cap Gains.   Thanks!

[lharouto]

I have a similar question and am trying to review the tax calculation.  I had social security income that is being partially taxed this year and I also had capital gains.  I had to use the download/CD version to prepare/file my taxes this year.  I don't understand why the two should differ but they do.  HELP.

[VolvoGirl]

What two are different?  For the Desktop program just switch to From Mode and look around.

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.   Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.

If you have capital gains, 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.