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ppstja
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TT error????? On my 1040 line 43, I have $76,465. On line 40, the tax is $10,494. When I look at Pub 17 for 2016, the tax should be $10,661 for married filing jointly

 
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TT error????? On my 1040 line 43, I have $76,465. On line 40, the tax is $10,494. When I look at Pub 17 for 2016, the tax should be $10,661 for married filing jointly

Do you have capital gains or qualified dividends?

While these two categories are added into Adjusted Gross Income and thus show up on line 11b of the 1040, they cause the tax computation to change, because ordinary income is taxed at one rate, and capital gains and qualified dividends are taxed at a lower rate.

The result is that when you have capital gains and/or qualified dividends, then the tax on line 12a is somewhat lower than it would have been in the tax tables.

 

[Edited 3/26/2020 9:40 am CDT - updated for 2019]

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TT error????? On my 1040 line 43, I have $76,465. On line 40, the tax is $10,494. When I look at Pub 17 for 2016, the tax should be $10,661 for married filing jointly

Do you have capital gains or qualified dividends?

While these two categories are added into Adjusted Gross Income and thus show up on line 11b of the 1040, they cause the tax computation to change, because ordinary income is taxed at one rate, and capital gains and qualified dividends are taxed at a lower rate.

The result is that when you have capital gains and/or qualified dividends, then the tax on line 12a is somewhat lower than it would have been in the tax tables.

 

[Edited 3/26/2020 9:40 am CDT - updated for 2019]

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