topic On 2019 form 1040 line 12a, Turbo Tax is calculating tax different than what I get when I go to the tables using the taxable income from line 11b. in Retirement tax questions

On 2019 form 1040 line 12a, Turbo Tax is calculating tax different than what I get when I go to the tables using the taxable income from line 11b.

julaney99 — Fri, 01 Jan 2021 18:50:29 GMT

The taxable income is $26,135 (Line 11b) and TurboTax calculates tax (Line 12a) as $2,347. If I go to the tax tables with taxable income of $26,135, I get $2,941. Any idea what I am doing wrong?

Re: On 2019 form 1040 line 12a, Turbo Tax is calculating tax different than what I get when I go to the tables using the taxable income from line 11b.

dmertz — Fri, 01 Jan 2021 19:11:31 GMT

You are probably inappropriately including qualified dividends or long-term capital gains in the amount that you are looking up in the tax table. These items of income are taxed at a lower rate and the tax liability must be calculated using the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. Given the amount of taxable income you have, these items are taxed at 0%. The result you got is the expected result if your taxable income included $4,965 of qualified dividends or long-term capital gains.

Re: On 2019 form 1040 line 12a, Turbo Tax is calculating tax different than what I get when I go to the tables using the taxable income from line 11b.

julaney99 — Sat, 02 Jan 2021 01:17:09 GMT

Yes you are correct. While my situation did not require a Schedule D, I just looked at the form you suggested and I see I have combine qualified dividends and capital gains of $4,967. Understand that I am taxed 0% for LTCG if my income is below $40,000. Thanks so much for reminding me. Recently retired and not accustomed to getting tax breaks due to income. Living off of savings until I figure out my path. Income this year was due to Roth Conversion. Likely will start SS in 2021, if I keep my income below $25K, I think that will be tax free also. Until I start taking money out of my retirement accounts, I'll take whatever breaks I can get!