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Here are a couple of reasons that your tax rate may be 0% on over $20,000 in taxable income:   Your return includes credits such as the Child Tax Credit, Earned Income Credit, Dependent Care Credit, etc. that wipe out your tax Your income includes qualified dividends, long term capital gains, and/or capital gain distributions from a mutual fund which are taxed at lower rates than ordinary income (starting at 0% for up to $48,350 of taxable income if you are filing as Single) Please post back if none of these apply so that we can assist you further.  

Make sure her computer meets the requirements in the link below:   TurboTax Desktop Requirements Once the software is downloaded she will have to use the orignial login information and click add new return. 

You tax return is good to go and can be filed; you should ignore that Blended Tax Rate number.    Take a look at this article that explains the marginal and effective tax rates.   These ratios are more commonly used and more useful to you as a taxpayer.     Blended tax rate = tax liability / taxable income, but as shown below, the number is a modified version of the effective tax rate, used only by TurboTax.     More detailed, the Blended Tax rate is:   Tax liability (Including SE tax, capital gain and special taxes),  Divided by  ÷ Taxable income (Total income minus deductions, but before credits).    There is a supplemental form included with your tax return titled Tax History.   Take a look at that page; the next to last line is your Effective Tax Rate.   You can see your rate has been about 8% since 2022.  So, there is nothing alarming on this year's return compared to previous years.  You can file your return with confidence!     

If you amended your 2023 return in August, 2024, and submitted additional payment at that time, there would be interest and late payment penalty charged, as well as underpayment penalty if applicable.   If you feel you have a basis for abatement of any outstanding penalties assessed, you can file Form 843. For more details, see the Form 843 Instructions.   The IRS may reduce an underpayment penalty if any of the following apply: You or your spouse (if you file a joint return) retired in the past 2 years after reaching age 62 or became disabled and you had reasonable cause to underpay or pay your estimated tax late. See Waiver of Penalty in Instructions for Form 2210PDF. You had most of your income tax withheld early in the year instead of spreading it equally through the year.  Your income varies during the year. Complete Form 2210, Schedule AI, Annualized Income Installment Method PDF(found within the form). The penalty for underpayment of estimated tax can also be removed to the extent that the underpayment is the result of a casualty, local disaster, or other unusual circumstance such that it would not be fair to impose the penalty.   See this IRS webpage for more information about conditions under which IRS may abate a penalty.    

I guess it could be because there's still carry over passive activity loss from previous years of the old property?    But it's quite confusing to list both the old (exchanged away)  and new (received from the exchange)  properties here. Can someone knows the matter provide some insights?    thank you.

Sorry for any confusion. This is a situation with dividends below $10 where no tax form was issued. I understand entering into TT in Box 1 as if I did receive a form, but wasn’t sure if it only goes into 1a or if there is something I should be calculating for Box 1b as well.