topic Federal Taxes You own generated by Turbotax is not correct in Get your taxes done using TurboTax

Federal Taxes You own generated by Turbotax is not correct

Stonre007 — Mon, 22 Mar 2021 00:57:26 GMT

Hi,

I recently used TurboTax Deluxe to prepare my tax. Now I am in Federal Review page:

However, the "Federal Taxes you Own" number is not correct based on my calculation with the rate specified in this link.

My case is married joint filing. I used the number in "Your Taxable Income" and find the corresponding bucket in this link and based on that calculated the "Federal Taxes You own". But the number I calculated is around $4K less than the number Turbotax calculated. I wonder whether this link provided wrong calculation or I miss anything or the turbotax has some bug?

Thanks a lot for any help!

Re: Federal Taxes You own generated by Turbotax is not correct

VolvoGirl — Mon, 22 Mar 2021 01:03:15 GMT

Need more specific details to check. What is the taxable income on line 15 and the tax on 16? Usually Turbo Tax is less tax.

It depends on what kind of income you have, if you have capital gains or qualified dividends the tax 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.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

Re: Federal Taxes You own generated by Turbotax is not correct

VolvoGirl — Mon, 22 Mar 2021 01:06:20 GMT

I didn't check that article but it might be for 2019 returns. Use the actual IRS tax tables here

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf