When I look at my completed return and see my taxable income (Line 43) of my return is $14,453, Turbo tax says my Tax is $1,450. However the Tax Tables show $1,750. Why?

[mesquitebean · Accepted solution]

TurboTax doesn't always use the tax tables.  Sometimes other methods are mandated.  For instance, did you have any capital gains or qualified dividends?    If so, that is calculated on the Qualified Dividends and Capital Gains Worksheet, where some of your income gets more preferable tax treatment.

There are other types of situations that require special calculations, too.

Are you using the Online version (website) as opposed to the desktop CD/download software?   In the latter version, one can go into Forms Mode to see what calculation method TurboTax used.

If you're using Online TurboTax, you can preview the Form 1040 for free prior to filing.  We can tell you how.  Or you can pay in advance to view/print all of the forms.  We can tell you how to do that, too.

[rolflalone]

Thank you so much for the answer! I can mail in my return and sleep well tonight. Yes, some of my income is from qualified dividends. That must be the answer.

[mesquitebean]

You're welcome.

Here are other less-common things that can require the use of special calculations.   Read the instructions for Line 44 at these Instructions for the Form 1040.  But if you had qualified dividends that likely explains it.  Once you pay, you should be able to view the Qualified Dividends and Capital Gains Worksheet to see how it was calculated.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf">https://www.irs.gov/pub/irs-pdf/i1040gi.pdf</a>