Calculated tax does not seem high enough, why?

gregoryrpeirce — Mon, 03 Jun 2019 19:11:05 GMT

I have a taxable income of 32,844. I'm married, filing jointly. According to the tax tables, I should pay about 3560 in tax. Turbotax calculated 3060. How did they come up with the lower figure?

The tax table is not the only source of tax calculation....

AnthonyC — Mon, 03 Jun 2019 19:11:06 GMT

The tax table is not the only source of tax calculation. There are times when you need to use other methods to calculate your tax due - one reason being tax rates can be different depending on the source of income.

This is especially true when you have dividends or other capital gains as sources of income. If any of your dividends were qualified dividends, then capital gains tax rates would apply to those dividends. Capital gains tax rates are often lower than regular tax rates, and long term capital gains rates can be as low as 0% for those in the 10 and 12% tax brackets. In these cases, TurboTax uses the Qualified Dividends and Capital Gains Tax Rate worksheet to calculate your tax due (per the IRS).

topic Calculated tax does not seem high enough, why? in Get your taxes done using TurboTax

Calculated tax does not seem high enough, why?

The tax table is not the only source of tax calculation....