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Why doe Turbo Tax calculate my 2020 taxes much lower than using the Tax rate schedule?
Turbo Tax calculates my tax at $5785. The 2020 IRS Tax rate schedule calculates it at $7800.
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February 22, 2021
12:49 PM
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Any Long Term Capital Gains? They are taxed at a lower rate.
February 22, 2021
1:42 PM
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Thanks for your reply. According to TurboTax Line 15, Taxable Income, is $68516. I had a long term capital gains loss, so no tax there. No short term capital gains. Line 16 Tax is $5782. According to the IRS Tax Rate Schedule, I'd be in the 12% bracket and my tax would be $7827. The difference is more than $2000. Why?
February 23, 2021
5:01 PM
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How much on Line 3a Qualified dividends? Those aren't taxed a the full rate either.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
February 23, 2021
5:07 PM
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Make sure line 7 on the 1040 is really a loss too.......Edited probably in parenthesis to show a loss... can be as much as -3,000 but no more.
Edit: Just checked....Looks like they use a "-" sign, not a parenthesis for a loss
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
February 23, 2021
5:12 PM