topic tax rate schedule, 2019, 22% bracket - error? in Get your taxes done using TurboTax

tax rate schedule, 2019, 22% bracket - error?

akdancer — Sun, 04 Oct 2020 00:16:51 GMT

TurboTax shows 22% bracket for MFJ starting at $78,750. IRS documents show it starting at $78,950 - $200 difference. What's up?

Re: tax rate schedule, 2019, 22% bracket - error?

Anonymous_ — Sun, 04 Oct 2020 13:51:21 GMT

Where, exactly, are you seeing this error? The screenshot below is from a test return and appears correct.

Re: tax rate schedule, 2019, 22% bracket - error?

akdancer — Sun, 04 Oct 2020 16:07:26 GMT

Thank for the reply. As shown, it's ok. BUT - my question is about the threshold value for the 22% bracket. Your example shows it starts at $78,751. Per what I see in IRS docs, it starts at $78,951.

Re: tax rate schedule, 2019, 22% bracket - error?

Anonymous_ — Sun, 04 Oct 2020 16:17:40 GMT

My screenshot shows the bracket at 12% for $78,751.

Re: tax rate schedule, 2019, 22% bracket - error?

akdancer — Sun, 04 Oct 2020 16:51:58 GMT

I didn't see your screenshot. I've added one, from Pub 17 (2019), p 257. 22% bracket starts at 78,950

Re: tax rate schedule, 2019, 22% bracket - error?

akdancer — Sun, 04 Oct 2020 17:07:16 GMT

Ah, the screenshot from the previous post.

And, my ref to Pub 17 should have said p. 255. (p. 257 was in the .pdf file).

Re: tax rate schedule, 2019, 22% bracket - error?

Anonymous_ — Sun, 04 Oct 2020 17:08:24 GMT

@akdancer wrote:

I didn't see your screenshot. I've added one, from Pub 17 (2019), p 257. 22% bracket starts at 78,950

Correct and that is where TurboTax starts the 22% bracket.

Re: tax rate schedule, 2019, 22% bracket - error?

akdancer — Sun, 04 Oct 2020 17:16:54 GMT

Below is what you wrote, and $78,751 <> $78,951.

My screenshot shows the bracket at 12% for $78,751.

Re: tax rate schedule, 2019, 22% bracket - error?

Anonymous_ — Sun, 04 Oct 2020 17:21:52 GMT

@akdancer wrote:

.....BUT - my question is about the threshold value for the 22% bracket. Your example shows it starts at $78,751. Per what I see in IRS docs, it starts at $78,951.

I am not certain whether or not we are looking at the same thing or talking around each other.

My screenshot shows taxable income of $78,751 and a tax bracket of 12%, not 22%.

Re: tax rate schedule, 2019, 22% bracket - error?

Opus 17 — Sun, 04 Oct 2020 17:34:43 GMT

@akdancer Specifically why do you think TurboTax starts the 22% bracket at $78,751?

The screenshot posted by @Anonymous_ shows that if they create a fake return with income of $78,751, it is still taxed at 12%, which is correct. We all agree that the IRS documents show that the brackets starts at $78,951. Where exactly in the program do you believe you are seeing the 22% tax bracket start at $78,751?

Re: tax rate schedule, 2019, 22% bracket - error?

akdancer — Sun, 04 Oct 2020 17:44:43 GMT

OK - I'm putting in a screenshot from Sch D worksheet. I expected the amounts there to correspond to the tax rate schedule. Obviously they do not. It's crazy to me, but that's the tax world.

Sorry to have bothered you about this.

Re: tax rate schedule, 2019, 22% bracket - error?

DoninGA — Sun, 04 Oct 2020 17:54:41 GMT

TurboTax uses the same calculations on the Schedule D Worksheet as are in the IRS Schedule D Worksheet.

IRS Schedule D (2019) Instructions page 16 - https://www.irs.gov/pub/irs-pdf/i1040sd.pdf#page=16

Re: tax rate schedule, 2019, 22% bracket - error?

Opus 17 — Sun, 04 Oct 2020 18:33:38 GMT

How strange. At least for purposes of this specific worksheet, the IRS is using the wrong figure—or, it is the right figure but it is calculated differently than the tax brackets. I wonder why.

Re: tax rate schedule, 2019, 22% bracket - error?

Anonymous_ — Sun, 04 Oct 2020 19:03:25 GMT

@Opus 17 wrote:

How strange. At least for purposes of this specific worksheet, the IRS is using the wrong figure—or, it is the right figure but it is calculated differently than the tax brackets. I wonder why.

Strange, indeed, but it is calculated differently based upon the table below.