Steve17,
Thank you for providing numbers. You and many others are figuring the tax incorrectly and then saying others on the forum don't understand. From your example regarding Form 2210AI Line 14.
Your example:
A simple example for Column (a):
Line 13 = 50006
Line E Column (a) in smart worksheet = 7000
Looking in Tax Tables: (MFJ)
Tax on (Line 13 - Line E) + 15% of Line E = 5806
The REAL answer should be between 5605 and 5806
but appears as 2245! OOPS! And if overridden, form may not be e-filed!
The tax on the non-dividend portion of Line 13 is $2,245. If you had $7,000 in dividends through 3/31, the annualized dividend (per IRS and TurboTax) would be $28,000. $50,006 - $28,000 = $22,006. That is the value to look up in the tax table.
Tax on annualized $28,000 dividend = $0. Since annualized income (Line 13) is <$80,800, all of the dividends through 3/31 are taxed at 0%.
Total tax Line 14 Column (a) = $2,245 + $0 or $2,245.
Everybody please stop propagating that the tax calculation on Line 14 is incorrect when you aren't versed in the calculation. Also, for those who are "adjusting" their entries for Schedule AI Line 1 and their entries for dividends and capitals gains to make the answer what they think it should be, you will have to defend that in an IRS audit. The IRS doesn't have those numbers, but they can request supporting documentation during an audit. Are we good here?
