First, I want to be sure that you are aware the qualifying dividends are taxed at 0%, 15% and 20%, depending on your income level. See the following (shamelessly stolen from Investopedia:(
In the case of qualified dividends, these are taxed the same as long-term capital gains, as of 2020, individuals in the 10% to 15% tax bracket are still exempt from any tax. Investors who fall in the middle brackets—25%, 28%, 33%, or 35%—pay 15% at most in capital gains. The highest earners, in the 39.6% bracket pay 20% in capital gains (plus 3.8% net investment income tax, per the Patient Protection and Affordable Care Act - see the table below).
OK, you probably know this and you know that based on your income, that the qualifying dividends are taxed at 15%.
Have you looked at the Qualifying Dividends and Capital Gains Worksheet (in your TurboTax output, if you print or PDF everything)? This describes how your tax is actually calculated when you have qualifying dividends. If you do have such dividends, then be sure to remove them from income when you calculate the regular federal income tax. This would be an easy way to overstate your tax.
"When I entered the W-2, the "income" under the federal review appears $3480.00 less. Then when I entered the HSA worksheet, my "income" drops by the entered HSA."
Sorry, I don't understand this paragraph. The income under the federal review appears to be $3,480 less than what? Than what is on your spreadsheet? Or did you mean $3,480 more?
You may be experiencing something that people who watch the Refund Meter too closely experience.
If, for example, you had in box 12 on your W-2 with a code W the amount $3,480, then this amount was removed from Wages in boxes 1, 3, and 5 before your W-2 was printed.
However, the IRS considers your HSA contributions as taxable until you show that you had the proper HDHP coverage, which you di in the HSA interview.
So when you enter your W-2, your income appears to be too large by $3,480 (because it has been added to line 8 (Other Income) on Schedule 1 (1040). However, after you have entered you HDHP coverage in the HSA interview, that line 8 entry is removed so your adjusted gross income goes back down.
Is tis what you are seeing?
"So I am getting $30.00 more as a refund" - Can you tell us on what line you see this deviation? Is it line 16 on the 1040? Is the taxable income on line 15 what you expect?
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