Incorrect Tax Calculation

ChasP57 — Sun, 16 Mar 2025 21:51:21 GMT

I believe TT Mac is calculating my tax wrong.

Taxable income (line 15) = $369,420

MFJ

Tentative tax = $74,521

But I calculate it as should be = $74,746

> 369,420 - 201,050 =168,370

> 168,370 X .24 = 40,409

> 40,409+34,337 =74,746

Makes no sense?

Re: Incorrect Tax Calculation

baldietax — Sun, 16 Mar 2025 22:35:31 GMT

TT tax calcs are usually solid... the tax is not just calculated using tax table applied to line 15, there are other lower tax rates for long term cap gains and qualified dividends if you have those. Look for the "Qualified Dividends and Capital Gain Tax Worksheet" which does the math for Line 16.

Re: Incorrect Tax Calculation

MonikaK1 — Mon, 24 Mar 2025 23:57:52 GMT

There may be several reasons that your total Federal tax liability doesn't match the tax tables.

Note that taxes are often calculated using a different method than the tax tables. For example, if you have capital gains, the tax on those is calculated at the capital gain rate for your income level. For 2024, your “qualified” dividends may be taxed at 0% if your taxable income falls below $47,025 (Single or Married Filing Separately), $63,000 (Head of Household), or $94,050 (Married Filing Jointly or Qualifying Surviving Spouse).

Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%. For taxable years beginning in 2024, the tax rate on most net capital gain is no higher than 15% for most individuals.

If you are self-employed, you may have self-employment taxes in addition to income taxes.

See this help article for more information.

You can preview your return before filing to find out how your taxes were calculated. See here for details.

TurboTax calculations are guaranteed. If your situation meets the terms of the 100% Accurate Calculation Guarantee, Intuit will reimburse the amount actually paid by you to the IRS or state in penalties and/or interest as levied against you in their first notice (i.e., if the notice is not paid, Intuit will not reimburse additional interest and penalties for not paying the first bill timely).

@ChasP57

topic Re: Incorrect Tax Calculation in Get your taxes done using TurboTax

Incorrect Tax Calculation

Re: Incorrect Tax Calculation

Re: Incorrect Tax Calculation