Difference in tax calculation

Forum|Forum|2 years ago
March 4, 2024
1 reply
5 views

For the taxable amount of $191,051., Turbotax is showing taxes will be $32,599.

But Per IRS slab for 2023 taxes, the tax amount is $32,652.

32580 + (191051 - 190750) * 0.24 = 32652

Why is this difference of $53 ?

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xmasbaby0

Level 15

There is more than one tax table used. There are several. Did you have any capital gains or qualified dividends, for example?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

raandomAuthor

Level 2

Yes I have capital gains or qualified dividends.

I am following this IRS link for calculation. https://www.irs.gov/filing/federal-income-tax-rates-and-brackets

Here I am talking purely about the tax calculation. Taxable amount to Tax amount.

Not the final tax amount.

SteamTrain

Level 15

BUT...you also indicated that you had some Dividends and Capital Gains.....Qualified Dividends and Captial Gains, (that are included in your total "taxable" income number)...thsoe are taxed at a different, usually lower rate. So you just can't use the "simple" calculation all of it.

You need a printout of your entire file including the worksheets...the calculation is probably on the Qual Divs & Cap Gains Tax Worksheet (though could be a different one, that one is most common)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*