TurboTax uses the IRS tables to compute your tax liability.
You may see a difference between the tax calculation by TurboTax and your manual calculation when you have long-term capital gains and/or qualified dividends which are taxed at a lower rate.
Long term capital gains are taxed at 0% if your taxable income is less than $47,025 for Single or MFS or less than $94,050 for MFJ..
However, long term capital gains are included in your taxable income for the calculation of these thresholds, and that part of long term gains which crosses over $47,025 (Single or MFS) or $94,050 (MFJ) is taxed at 15%. For taxable incomes over $518,900 (Single); $291,850 (MFS) or $583,750 (MFJ). The long-term capital gain tax rate is 20%.
Qualified dividends are taxed at the same rates as long-term capital gains.
Please read this IRS document for more information.
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