For an income of $138,175, standard deduction of $24000, child credit of $2500 and IRA deductible of $5,500. How is my tax = $15,587. Does not tally with tax table. Please help.
Even though the full amount shows up as income on the 1040 as income, if you have capital gains or qualified dividends the tax on line 11 is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all worksheets to see it.
