MelindaS1
Employee Tax Expert

Get your taxes done using TurboTax

Don't worry, this is correct in both calculation and method. Since your calculation result (35,145) uses the 24% tax rate, and the TurboTax Line 22 result (35,158) are so close, I assumed that they were off by 1 bracket, and that math works out: (206,045 x 0.22) - 10,172 = 35,157.9 (rounded for tax reporting), and for purposes of the Qualified Dividends and Capital Gain Tax Worksheet, that's the rate to use (based on the numbers you've provided).

 

While the first column in the Tax Computation Worksheet is labeled "Taxable income. If Line 15 is--" which refers to the amounts on Form 1040, you don't pull the 1040 Line 15 amount over. Pub 17 states:

Note: If you’re required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you’re looking up.

TaxCompWks.jpg

 

Since the amount you're looking up is "At least $100,000 but not over $206,700" (206,045), then you'd use the first row, at a rate of 22%, to figure the tax.

 

Good work reviewing and double-checking your tax forms before filing! 

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