Retirement tax questions
Take a look at this article to see how tax brackets work. And not all income is taxed the same. Some income is taxed at different rates (Qualified Dividends/Long-Term Capital Gains are taxed at a lower rate than ordinary income). If you have any of the following included in your return, the tax table doesn't give you accurate results:
- Qualified Dividends and Capital Gain Tax Worksheet
- Schedule D Tax Worksheet
- Schedule J
- Form 8615
- Foreign Earned Income Tax Worksheet
The tax calculation can be found on the worksheet titled Form 1040/1040SR Wks. The tax computation is on the Tax Smart Worksheet which is located between Line 15 and Line 16. If A1 is checked, your tax liability came from the tax tables. But if any other line has a checkmark, you will have to go to the corresponding worksheet to see the tax calculation. In the example below, you would need to look at the Qualified Dividend/Capital Gains Wks to see how the tax was calculated.
