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In my case it was the Qualified Dividends that reduced my tax rate. I didn't realize that the first $94,000 of dividends are tax free for married filing jointly. The Capital Gains and Dividend worksheet helped me back into those calculations but boy does the IRS get to it in a backwards way. It would be nice if TT summarized the different rates for each type of taxable income to simplify this analysis and increase our confidence in its calculations. Also, it was confusing that no box was checked explaining where the calculation was coming from (tax table, etc.). All good now, thanks to everyone for the responses!
I am trying to use this thread as guidance for how to better understand my tax computation. I was happy to see the menu guidance for where to go in "Forms" to find the worksheets needed but, most unfortunately, the Qualified Dividends and Capital Gains worksheet(s) that are pointed out do NOT appear in my tax results. This is enormously frustrating since I do have both and have entered them both and I am using the TurboTax Premier version. The status of the return at this stage is "ready to file but NOT officially filed". Any help you can provide will be appreciated.
@Angelo6 If the QD&CG worksheet was not in the list for your tax return, then it was not used for the taxes on the taxable income. The Schedule D Tax Worksheet may have been used.
You can open in form, schedule or worksheet by clicking Open Form at the top of the Forms mode page. Just type in the name and click on the highlighted result to open.
Thank you Bill! I was struggling to reconcile the TAX on Line 16 with the calculated amount from the TAX TABLES using LINE 15 TAXABLE INCOME. QUALIFIED DIVIDENDS was the culprit!
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