topic Qualified Dividends and Capital Gain Tax Worksheet Error? in Get your taxes done using TurboTax

Qualified Dividends and Capital Gain Tax Worksheet Error?

Woody10 — Sat, 14 Feb 2026 01:18:54 GMT

I'm using the 2025 desktop version of TurboTax software.

I recently put in some interest that I didn't get a 1099-INT form for due to in being only $3.69. The refund

went down by $11. I found the step to be between $3.63 and $3.64. I check the worksheet in the subject line

and see the jump in tax between those two values on line 22. This can't be a rounding error since both would

round to $4. I'm also below the single bracket on line 6 of 48,350 by several thousand. I assume it's some kind

of bug?

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

mesquitebean — Sat, 14 Feb 2026 02:19:02 GMT

I'm a fellow user, not a tax expert, but I wonder if it's this. Do you have other capital gains and qualified dividends that invoked the use of the QDCGT Worksheet for your tax calculation?

If so, the Qualified Dividends and Capital Gains Tax worksheet uses the IRS Tax Tables (if income less than $100,000) for the final calculation to help it to determine which is the lower rate. At your income level the IRS Tax Tables are in $50 increments. Think of them as $50 brackets. If you are near the top of one $50 bracket and add a few dollars of income, it can push you into the next $50 bracket of the IRS Tax Table.

Look at the QDCGT Worksheet in Forms Mode and the calculations on the last 4-5 lines. Specifically, look at Lines 22 and 24 of that worksheet. Then look up the tax figure shown there in the IRS Tax Tables, which you can find in this IRS Publication, and you'll see how the $50 "brackets" would work with your income figures.

https://www.irs.gov/pub/irs-pdf/p1040.pdf

[EDIT NOTE: 2/13/2026 at 6:10 PM Pacific Link revised from the IRS HTML web version to an IRS PDF version, which is much easier to read.]

Try looking at the QDCGT Worksheet and the IRS Tax Table amounts both before you add the additional interest, and look at the QDCGT Worksheet and IRS Tax Table after you enter the extra interest to see how it changed in regard to the IRS Tax Table $50 "brackets." You may have simply been about $3.63 below the next $50 bracket, and if so, then the extra $3.69 sent you over the cliff into the next $50 bracket in the IRS Tax Table.

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

mesquitebean — Sat, 14 Feb 2026 02:07:32 GMT

ADDENDUM:

Also, here's how you can confirm what method TurboTax is using to calculate your tax. Go into Forms Mode and bring up the Form 1040 Worksheet. On that Worksheet scroll down to between lines 15 and 16, and you should see a Tax Smart Worksheet which shows what computation method or methods TurboTax used. It may simply show that it used the QDCGT Worksheet, but sometimes it can use more than one method depending on items in your return.

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

mesquitebean — Sat, 14 Feb 2026 02:13:00 GMT

@Woody10

ADDENDUM 2 😁

In my first comment above, I've just changed the link to the IRS Tax Tables to a PDF of the tables at the IRS website. It is formatted in a way that's much easier to read than that original link which was HTML browser format. Here it is again:

https://www.irs.gov/pub/irs-pdf/p1040.pdf

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

VolvoGirl — Sat, 14 Feb 2026 02:20:05 GMT

I once added $6 in interest and the tax went up $12! It pushed me into the next tax bracket. I was right at the line.

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

Woody10 — Sat, 14 Feb 2026 04:33:13 GMT

Thanks for the answer mesquitebean.

I was using tables from Morgan Stanley that give income bracket steps that give a percentage to

calculate the tax over the previous step. So it's linear rather than the IRS tables which as you stated

are in $50 steps. The extra penny that doesn't show up in the rounded $82,350 put me into

the next bracket which costs me $11. I was more worried about the software than the $11 so thanks

for setting me straight.

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

mesquitebean — Sat, 14 Feb 2026 04:38:51 GMT

You're welcome. I'm glad it helped. Good luck.

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

sixiang1986 — Sat, 07 Mar 2026 20:46:05 GMT

I believe Turbo double taxes the short term investment gains.

Re: Qualified Dividends and Capital Gain Tax Worksheet Error?

VolvoGirl — Sat, 07 Mar 2026 21:42:14 GMT

@sixiang1986 Even though it shows up as income on the first page,if you have capital gains or qualified dividends the tax on line 16 is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all worksheets to see it.

IRS Qualified Dividends and Capital Gain Tax Worksheet—Line 16 on 1040 instructions page 36. And you will need the IRS Tax Tables starting on page 64 or the Tax Computation Worksheet on page 76.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf