2023 Tax Computation Worksheet—Line 16

[ItsMe7]

Potential issue between TurboTax 1040, line 16 tax calculation and Publication 17, 2023 Tax Computation Worksheet—Line 16, Section B, Married Filing Jointly, Line 15, At least $100,000 but not over $190,750 (22%)  calculation.

TurboTax calculates one tax amount, but when manually calculate using Publication 17 formula, I get a different tax amount.

TurboTax website 2023 tax brackets and federal income tax rates shows $89,451 to $190,750 for 22% tax rate. Not that range matters if at least $100,000, but calculation does not appear correct.

[BillM223]

How does the calculation appear to be incorrect? Please show us the numbers.

Also, note that the Tax Brackets are not the same as what's in the Tax Tables publication. If the income is 90,000, then you are supposed to use the Tax Tables, not the "Tax Computation Worksheet".

[VolvoGirl · Accepted solution]

It depends on what kind of income you have.  There are like 7 different ways to figure the tax.

See the IRS worksheet on 1040 page 36 for how the tax is figured.  Turbo Tax uses the same worksheet.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Even though it shows up as income on the first page,if you have capital gains or qualified dividends the tax 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.  And you will need to use this IRS worksheet on page 15.

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

[ItsMe7]

Great explanation!  Walked through steps on Qualified Dividends/Capital Gain Tax worksheet.  I appreciate the quick response! Have a great weekend!

[ItsMe7]

Thank you. VolvoGirl walked me through my error. Have a great weekend!