If you enter qualified dividends and/or capital gains on your return, taxes will not be calculated using the tax tables, but using either the Schedule D Tax Worksheet provided in the Instructions for Schedule D, or the Qualified Dividends and Capital Gains Tax Worksheet in the Instructions for Form 1040 and 1040-SR.
These worksheets will result in lower taxes than the tax table or tax schedule.
This is what you're seeing happen in TurboTax.
[Edited 03|18}2020 10:37 am]
Did you enter any qualified dividends or capital gains on your return? If so, the taxes are not calculated using the tax tables, but using the Qualified Dividends and Capital Gains worksheet, which will result in a lower tax amount.
Thanks, you're a lifesaver. I looked for that form and TT did do that as you stated. Thanks again for a quick answer as I would have been worried until I found out why.
You bet! I'm going to add my official answer, just so your question can be closed. Have a great weekend!
If you enter qualified dividends and/or capital gains on your return, taxes will not be calculated using the tax tables, but using either the Schedule D Tax Worksheet provided in the Instructions for Schedule D, or the Qualified Dividends and Capital Gains Tax Worksheet in the Instructions for Form 1040 and 1040-SR.
These worksheets will result in lower taxes than the tax table or tax schedule.
This is what you're seeing happen in TurboTax.
[Edited 03|18}2020 10:37 am]
I used the QUALIFIED DIVIDENDS AND CAPITAL GAIN TAX WORKSHEET but the tax computed for my total return seems not calculated the tax due on our other income on line 15 of 1040. I like the lower tax due but doesn't seem correct. What am I missing?
@CLynn0 wrote:
I used the QUALIFIED DIVIDENDS AND CAPITAL GAIN TAX WORKSHEET but the tax computed for my total return seems not calculated the tax due on our other income on line 15 of 1040. I like the lower tax due but doesn't seem correct. What am I missing?
if you are referring to the 2020 tax return, the software, forms and schedules has not yet been finalized for investment gains and losses.
The Schedule D and Form 8949 are scheduled to be available on 01/14/2021.
Go to this TurboTax website for IRS forms availability - https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html