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ashenoy
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Should my taxes be $16918. My completed form 1040 shows tax amount of $14957 for line 10 taxable income of $113,816. Why?

 
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Should my taxes be $16918. My completed form 1040 shows tax amount of $14957 for line 10 taxable income of $113,816. Why?

$16918 would be correct for a MFJ, or Qualifying Widow(er) status...BUT...only if all your income was from ordinary income (W-2, taxable Interest, Ordinary dividends, taxable amounts from Social Security, SE profits....a couple others.)

 

...........however, if you have $$ from Qualified Dividends (line 3a), and/or from Schedule D/8949 stock or Mutual fund Capital gains (adds into line 6 with other stuff from schedule 1)...THEN...some of the $$ that add into line 10 are taxed as 0%, or another limited tax rate, that are not indicated by the simple tax calculation.  Your lower tax indicates you do have some income from Qualified dividends, or Capital Gains.

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There are actually several different tax calculations that might need to be used, based on each individual's tax entries......most commonly, the "Qualified Dividends and Capital Gains Tax Worksheet" is used....but yours could be one of several others.  Print out/save a PDF copy of your tax return, but the bigger tax file for your records with all the calculation worksheets and try to find the one that was used for your tax calculations.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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