I believe that the Turbo Tax Premium tax computation for a 1099-S entry is in error, especially on the "Qualified Dividends and Capital Gain Tax Worksheet.
I entered the 1099-S capital gain of sale of a DVC contract as an entry to Turbo Tax Premium. Turbo Tax then entered this on my 1040 -SR form line 7. Thus it was added to my other on line 16.Taxable income. I have no problem so far. But now Turbo Tax then computes the Taxable Income on form 1040-SR line 16. Schedule D is filled out as well form 8949 "Sale of Other Dispositions of Capital Assets" by Turbo Tax.
The rules for Capital Gains use a different tax rate table to compute the total taxes on the income and the capital gains.
The computation of the tax is done on form "Qualified Dividends and Capital Gain Tax Worksheet". this computation should report that since my taxable income is ( $61,000 and should not include the reported 1099-S gain of $1,400 ) is substantially below the IRS listed tax rate limit of $89,250 I have no taxes on that 1099-S entry. But I see that Turbo Tax computes a slightly higher tax amount. I do believe that this computation is correct. Since I have a 1099-S also then the IRS has a copy also. IRS regulations require that I must report the gain on Schedule D. But because the tax rate limi says I do not exceed the limit therefore I have no gain to incrase my tax amount.
I ask others if I am wrong but I am not sure it is Turbo Tax or the IRS.
