I am helping my neighbor to prepare his 2020 1040-SR tax return. His AGI (line 11) is around $88K and Taxable income (line 15) is around $24K, but Tax (line 16) is Zero.. no boxes checked for line 16. I don't understand why is there no tax due on Line16 even though he has taxable income? He itemizes his deductions. I am using 2020 Home & Business Turbo Tax software. Thank you for the help!
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Is he reporting Qualified Dividends or Capital Gains on his tax return? If so, the Qualified Dividends and Capital Gains Worksheet would be used to calculate the taxes on the taxable income.
Click on Forms. When in Forms mode, on the left side of the screen, if the worksheet is being used there will be a Qual Div/Cap Gn worksheet listed.
Is he reporting Qualified Dividends or Capital Gains on his tax return? If so, the Qualified Dividends and Capital Gains Worksheet would be used to calculate the taxes on the taxable income.
Click on Forms. When in Forms mode, on the left side of the screen, if the worksheet is being used there will be a Qual Div/Cap Gn worksheet listed.
Thank you very much, now I see how it's calculated!
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