Incorrect Taxes Due

[tms618]

My taxable income was calculated at $68,200.  I paid quarterly estimates totaling $7,200, knowing I would owe close to that.  Per Turbo Tax, I have no taxes due and should get a $7,200 refund.  Can't find what I may have done wrong but I know I owe more than zero on my taxable income.  Any ideas?

[Vanessa A]

Did you have income tax withheld from a W2?  Do you have children and are getting the Child Tax Credit? Do you have non refundable credits? 

For you to owe $0 and not have a refund, you could have a non refundable credit which brought your tax liability to $0, but it will not take it below $0 since it is not refundable.  This would result in a full refund of your payments.  Look at lines 16-33 to see if you have any credits.

You can also go back and double check your entries.

You can view your 1040 by clicking the following:

• Tax Tools
• Tools
• View Tax Summary
• Preview My 1040

[tms618]

Thanks for your input.  I think I found the issue and it has to do with Schedule D.  I looked at the Qualified Dividends and Capital Gains Tax worksheet generated by Turbotax and then I manually reworked the calculations.  After doing that, I came up with the same outcome, which is no tax owed.  Seems bizarre to me, but that  what it says.

[DawnC]

If you sell an asset after owning it for more than a year, any gain you have is a "long-term" capital gain. If you sell an asset you've owned for a year or less, though, it's a "short-term" capital gain.   How much your gain is taxed depends on how long you owned the asset before selling.

• The tax bite from short-term gains is significantly larger than that from long-term gains - typically 10-20% higher.
• This difference in tax treatment is one of the advantages a "buy-and-hold" investment strategy has over a strategy that involves frequent buying and selling, as in day trading.
• People in the lowest tax brackets usually don't have to pay any tax on long-term capital gains. The difference between short and long term, then, can literally be the difference between taxes and no taxes.

5 Things You Should Know about Capital Gains Tax