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The program calculates a tax of $ 64,199 on $ 315,191. I calculate $ 64,240 using the tax table formula (.32x-36621). Which is correct?

 
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Ashby
New Member

The program calculates a tax of $ 64,199 on $ 315,191. I calculate $ 64,240 using the tax table formula (.32x-36621). Which is correct?

The tax table doesn't always take into account credits or income that is taxed differently such as capital gains. Go with the TurboTax calculation.

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2 Replies
Ashby
New Member

The program calculates a tax of $ 64,199 on $ 315,191. I calculate $ 64,240 using the tax table formula (.32x-36621). Which is correct?

The tax table doesn't always take into account credits or income that is taxed differently such as capital gains. Go with the TurboTax calculation.

The program calculates a tax of $ 64,199 on $ 315,191. I calculate $ 64,240 using the tax table formula (.32x-36621). Which is correct?

It depends on what kind of income you have, if you have capital gains or qualified dividends the tax on line 44 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.

You can probably tell because the tax on 1040 line 44 will be less than the Tax Table
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