My estimate for 2023 includes dividend income or 52,000 and ordinary income of 260,000. Turbo Tax calculated my 2023 estimated taxes as 44,529. Using 2023 tax schedule, 15% for dividends and 3.8% net investment tax, I get 49,209 tax on ordinary income, 7,800 on dividends, and 1,976 on 3.8% net investment tax for a total estimated tax of 58,985. That is, Turbo Tax is coming in 14,456 lower than expected based upon my calculations.
I entered the same income numbers in the 2022 tax return as a test and Turbo Tax calculated taxes of 60,179 using the 2022 tax rate schedules. That is, Turbo Tax is coming in 15,650 lower than the 2022 Tax calculated by Turbo Tax for 2022.
Am I missing some tax benefit from tax law changes for 2023? Or is the software calculation in error?
