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pgtt6817
New Member

Tax calulation error?

is there an issue with how TurboTax calculates taxes on Line 11a on the 1040 form.  My turbotax says I owe $75,065 based on income on line 10 of $350,424.  If you go and do it manually from the IRS 2018 Tax Computation worksheet, the math says it should be taxed at $75,515  (difference of $450)   which one is correct?  

1 Best answer

Accepted Solutions
Anita01
New Member

Tax calulation error?

If it appears that there is  a difference between the tax due in the program and the calculation of a higher amount from the IRS tables, the difference is likely due to Capital Gains income or Qualified Dividends in your return.  Both those income sources can be taxed at much lower rates than the ordinary income from the tax tables.

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4 Replies
Anita01
New Member

Tax calulation error?

Did you have capital gains or qualifying dividends?
pgtt6817
New Member

Tax calulation error?

qualifying dividends.   that must have been the difference.  thanks
pgtt6817
New Member

Tax calulation error?

I just checked it using a 15% for the qualifying dividends part and turbotax is correct.
Anita01
New Member

Tax calulation error?

If it appears that there is  a difference between the tax due in the program and the calculation of a higher amount from the IRS tables, the difference is likely due to Capital Gains income or Qualified Dividends in your return.  Both those income sources can be taxed at much lower rates than the ordinary income from the tax tables.

View solution in original post

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