@janetleen wrote:
I am working on my 2020 taxes and have discovered the Qualified Dividends and Capital Gains Tax worksheet does not compute the proper tax for either line 22 nor line 24. We are married filing jointly.
Line 22 calculates a tax on $301,272 as $60,464 where the proper computation is $68,885. The formula to be used should be 37,631+.24*(income-$171,050) which for $301,272 computes as $68,885. The base amount TurboTax used to get the wrong number would be an income of $266,187.50 rather than the actual $301,272.
The same problem is on line 24. The amount Turbo Tax computed should be on the income amount of $398,702 giving tax of $101,457 instead of the incorrect computation of $89,616 which would be for a income level of $361,702. What do I do to have this corrected, either my calculations or TurboTax
What is on line 5?
How are figuring the tax? Did you use the tax computation worksheet or form 8615 whichever applies?
See the 1040 instructions page 77 for the proper multiplier and subtraction amounts.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
