Calculation of Tax Owed

[joegez1]

I use the Taxable Income from Form 1040 Line 15 and the tax computation algorithm on Page 77 of the IRS 1040 instructions at https://www.irs.gov/pub/irs-pdf/i1040gi.pdf.  The answer I get for the tax I would owe is different from the answer calculated by TT.  Why is that?

[RachelW33 · Accepted solution]

When you have capital gains and/or qualified dividends, your tax is calculated on the Qualified Dividends and Capital Gain Tax Worksheet, see here: IRS Schedule D Instructions.

If you are using the cd/download version of TurboTax, you can view this worksheet in Forms Mode.  If you are using TurboTax Online, you will need to save your return as a pdf file and include all worksheets to view it.

[joegez1]

Thank you.