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Level 2
March 16, 2022
Question

Fed Taxes

  • March 16, 2022
  • 7 replies
  • 17 views

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)

7 replies

Level 15
March 16, 2022

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?

**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.**
DoninGA
Level 15
Level 15
March 16, 2022

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.

Level 2
March 16, 2022

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

DoninGA
Level 15
Level 15
March 16, 2022

@sherlock-homes wrote:

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


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.