This past weekend, I took the time to download the IRS forms and instructions and calculate the tax manually. The IRS instructions for Form 8615 say to use the Qualified Dividends and Capital Gain Tax Worksheet to figure Line 4 of the 2019 Tentative Tax Based on the Tax Rate of Your Parent Worksheet unless you have to use the Schedule D Tax Worksheet or Schedule J. Those instructions outline exactly which Worksheet to use. In my case, according to the IRS instructions, the Qualified Dividends and Capital Gain Tax Worksheet should be used. Line 12 of the 2019 Tentative Tax Based on the Tax Rate of Your Parent Worksheet is what goes on Line 7 of Form 8615. TurboTax incorrectly populated Line 4 using the information from the Schedule D Tax Worksheet.
I called TurboTax back yesterday and spoke to someone who walked through everything with me. She clearly understood the issue. She is working on my case and has already followed up with me a few times. She said she will follow up again tomorrow. When I have additional information, I will post an update.
