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New Member
posted Jun 6, 2019 10:27:29 AM

I get the following info : >> taxable income:$93,319 status : Single , income tax : $19,018. >> This looks low as per income tax rates for 2017 . How is this computed ?

Income tax rates are obtained from https://taxfoundation.org/2017-tax-brackets/

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1 Best answer
New Member
Jun 6, 2019 10:27:31 AM

The 2017 Tax Table shows exactly $19,113 for your income, so you probably have some income taxed at a different rate, such as a capital gain. 

4 Replies
New Member
Jun 6, 2019 10:27:31 AM

The 2017 Tax Table shows exactly $19,113 for your income, so you probably have some income taxed at a different rate, such as a capital gain. 

New Member
Jun 6, 2019 10:27:32 AM

Thanks for the reply. I do have short term capital gains (no long term capital gains) and as far as I know that should be taxed at the same rate. Will that make a difference ?

New Member
Jun 6, 2019 10:27:35 AM

If you have capital gains, even if from a 1099-DIV, your tax is calculated on a worksheet instead of using the tables. When you print your return, if you ask for all forms and worksheets, you'll see a capital gains tax worksheet and can see your calculation there.  There are actually 7 different method that can be used to calculate your tax.  You have to see which method was used on your return.

New Member
Jun 6, 2019 10:27:38 AM

Hi,

This was actually caused because my dividends were actually listed as 'qualified dividends' and hence were subject to a lower income tax rate of 15%.


Thanks