On 2019 form 1040 line 12a, Turbo Tax is calculating tax different than what I get when I go to the tables using the taxable income from line 11b.

[julaney99]

The taxable income is $26,135 (Line 11b) and TurboTax calculates tax (Line 12a) as $2,347.  If I go to the tax tables with taxable income of $26,135,  I get $2,941.  Any idea what I am doing wrong?

[dmertz · Accepted solution]

You are probably inappropriately including qualified dividends or long-term capital gains in the amount that you are looking up in the tax table.  These items of income are taxed at a lower rate and the tax liability must be calculated using the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet.  Given the amount of taxable income you have, these items are taxed at 0%.  The result you got is the expected result if your taxable income included $4,965 of qualified dividends or long-term capital gains.

[julaney99]

Yes you are correct.  While my situation did not require a Schedule D, I just looked at the form you suggested and I see I have combine qualified dividends and capital gains of $4,967.   Understand that I am taxed 0% for LTCG if my income is below $40,000.  Thanks so much for reminding me.  Recently retired and not accustomed to getting tax breaks due to income.  Living off of savings until I figure out my path. Income this year was due to Roth Conversion.  Likely will start SS in 2021, if I keep my income below $25K, I think that will be tax free also.  Until I start taking money out of my retirement accounts,  I'll take whatever breaks I can get!