Fed Taxes

[sherlock-homes]

I have an adjusted gross income of 26,273 and turbo tax calculated my tax as 1,558. This does not agree with the tax tables for this income which is 2,755. How did turbo tax arrive at this number? I reviewed the PDF file but see no reason for this. (1040-SR)

[xmasbaby0]

There is not just one tax table.  There are seven different tables that can be used.  Did you have any qualified dividends or capital gains, for example?

[DoninGA]

You are not taxed on your Adjusted Gross Income.  You are taxed on the taxable income after the standard or itemized deduction is subtracted from your AGI.

Your taxable income is on Line 15 and the taxes on the taxable income is on Line 16 of the Form 1040.

[sherlock-homes]

Agreed. I used the wrong wording. The 26,273 is my taxable income.

[DoninGA]

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@sherlock-homes wrote:

Agreed. I used the wrong wording. The 26,273 is my taxable income.

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Did you report any qualified dividends or capital gains on your 2021 tax return?  If so, the tax tables would not be used.

Either the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gains Worksheet would have been used.

[sherlock-homes]

Yes, I had both capital gains and qualified dividends. Do I just trust turbo tax?

[DoninGA]

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@sherlock-homes wrote:

Yes, I had both capital gains and qualified dividends. Do I just trust turbo tax?

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TurboTax must follow all the IRS rules when calculating anything on a federal tax return.

If you are using the TurboTax desktop editions you can click on Forms.  When in Forms mode you will see the either the Schedule D worksheet or the Qualified Dividends and Capital Gains Worksheet listed in your account.

If you are using the TurboTax online editions you will not be able to access any of the worksheets until you have either paid the TurboTax account fees or you have filed the federal tax return and it has been accepted by the IRS.

To pay the TurboTax online account fees by credit card, without completing the 2021 return at this time, click on Tax Tools on the left side of the online program screen. Then click on Print Center. Then click on Print, save or preview this year's return. On the next page, to pay by credit card, click Pay Now. The next screen will show a review of your Fees, click on Continue. Complete the next screen to pay by credit card and click Continue.

[sherlock-homes]

Thank you. I never knew there was the forms page in the desktop version and you can even drill down to the worksheets.