Fed tax is only 6%. "Taxable interest income" seems to be ignored.

[reg-20-flamespla]

Your total income for the year was $56,116, including:
- Taxable interest income, $34,478
- Ordinary dividends, $24,638
- Capital gains, -$3,000

You took the Standard Deduction of $14,600. Your total deductions were $14,646, including a $46 Qualified Business Income Deduction.

After applying your deductions, your taxable income was $41,470. Based on this amount, your total tax before any credits was $2,468.


I can't fathom how it believe I owe less than the lowest bracket which is 10%.  It seems like it's only taxing my dividends.

The Tax Smart sheet has "Qualified Dividends and Capital Gain Tax Worksheet" selected

[SteamTrain]

@reg-20-flamespla 

If most of those dividends were "qualified" dividends, box 1b.......then the number is about right.

Why?  At that income level MOST of the Cap gains and Qualified dividends are taxed at 0%...so all that is left to tax is the Interest.

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And I get  $62,116 of income, before Std deduction.

[reg-20-flamespla]

Oh thank you, that could make sense.

Do you know if the income limit for the 0% div tax includes the STD ded?

[SteamTrain]

You'll Have to print out the Cap Gains and Qual Dividends tax worksheet...and work thru it yourself.

I find it to be a mess that only PhD accountants can figure out.

The amount of Divs/Cap gains that were actually taxed (at 15%) are on line 17, & tax on line 18

.....the tax assessed on your interest+nonqualified dividend remainder is on line 22

[reg-20-flamespla]

I went back and estimated what my non qualified income would be and it worked out to what TT is showing, so thank you all.