Form 1040-SR 2022- shows taxable income of $20000 (line 15), however line 16 shows 0 (zero)tax. Is program correct? Per tax tables I should be paying around $2000 (joint return).
Is program calculating tax correctly? I like zero but is it correct?
I am using CD version of Home and Business 2022.
It depends on what kind of income you have. There are like 7 different ways to figure the tax.
See the IRS worksheet on 1040 page 36 for how the tax is figured. Turbo Tax uses the same worksheet.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
If you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return.
In the online version you need to save your return as a pdf file and include all worksheets to see it.
For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.
If your tax return includes any qualified dividends or capital gains then the tax tables are not used. The Qualified Dividends and Capital Gains Tax worksheet is used.
See IRS Publication for Form 1040 with the QDCG Tax worksheet on page 36 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=36
Thank you very much. Upon further review (which you suggested) I was able to easily recognize that my tax liability is ZERO. this is great news. Thank you again.