@bchan2805 wrote:
My taxable income is $70,730, Married filed jointly
Turbo tax calculates my tax to be $6,836. My calculation using IRS tax bracket is $8,092. What is the reason?
TurboTax does not always use just the Tax Tables. TurboTax uses the method required for your specific situation. There are several ways that the tax may have to be calculated, depending on the items in your return.
One of the most common reasons for this is if you have any qualified dividends or capital gains. In that case, TurboTax has to use the "Qualified Dividends and Capital Gain Tax Worksheet" to figure the tax. That would provide you a lower tax amount since qualified dividends and capital gains have a more favorable tax treatment.
We can tell you how to look in your product to see what method TurboTax used to calculate your tax amount. Are you using the Online TurboTax product, or are you using desktop software (CD/download)?
