topic Re: Tax calculation in Get your taxes done using TurboTax

Tax calculation

lbarnette59 — Fri, 20 Sep 2019 18:46:06 GMT

I am preparing my mother's tax return. She was 94 December 31, 2018. I have prepared the return but the tax calculation seems way off to me. Her taxable income was $70,964 but Turbo tax only calculated a tax of $5,049. She sold a piece of land that led to a $70,000 gain. She held the land for 48 years. Every tax rate I have seen shows at least a 15% tax rate. Concerend that TT is not calculating tax properly. I am thrilled if it is and I am missing a rule concerning her age or length of time land was held.

Re: Tax calculation

DoninGA — Fri, 20 Sep 2019 19:03:08 GMT

Since she has a long term capital gain for the property sale her taxes are calculated using the Qualified Dividends and Capital Gain Tax worksheet, not the Tax Tables.

See this IRS web page for the QDCGT worksheet - https://www.irs.gov/pub/irs-prior/i1040gi--2018.pdf#page=40

Re: Tax calculation

lbarnette59 — Mon, 23 Sep 2019 15:48:59 GMT

Thank you, thank you, thank you. I knew the capital gains tax was 15% but didn't know anything about the additional allowance on line 8 of the form you linked to below.