No Federal Tax Shown

AP99 — Mon, 15 Mar 2021 20:46:41 GMT

Turbotax 2020 shows no Federal Tax due even though the IRS tax tables indicate we should owe over $4000 in taxes. We have no Federal credits.

Re: No Federal Tax Shown

AnnetteB6 — Mon, 15 Mar 2021 21:00:43 GMT

Your income tax amount will depends on the nature of your income reported on Line 15. If part of your taxable income is due to long-term capital gains or qualified dividends, then your tax amount is not determined strictly by using the Tax Tables.

Qualified dividends and capital gains are taxed at a lower rate and therefore your overall tax may be lower, or even zero.

The worksheet used to calculate your taxes when taking capital gains into account is found in the IRS Instructions for Form 1040. It is called the Qualified Dividends and Capital Gains Tax Worksheet. This worksheet will be included as part of your tax return if it is being used to calculate your tax.

You can also find it on page 35 of the PDF document at this link: 2020 Form 1040 Instructions

Re: No Federal Tax Shown

AP99 — Mon, 15 Mar 2021 22:26:53 GMT

Thanks for the help AnnetteB6! I think that is the situation.

topic No Federal Tax Shown in Get your taxes done using TurboTax

No Federal Tax Shown

Re: No Federal Tax Shown

Re: No Federal Tax Shown