Federal tax calculation error

Forum|Forum|6 years ago
February 21, 2020
2 replies
10 views

Turbotax 2019 calculates a tax of $7145 due on a taxable income of $63655 (line 11b), married filing jointly. Using either federal tax tables (Form 1040) or the federal tax rates (10% below $19,400 plus 12% above), the tax due is $7252+/- 1. Has anyone else encountered this error? I have updated TT Deluxe as of 2/21/2020.

SteamTrain

Level 15

No problems anywhere..

There are something like 7 different ways that taxes are calculated. The tax tables are used only for the simplest tax returns.

IF you have Qualified Dividends on a 1099-DIV (box 1b), or any capital gains on a -DIV forms (box 2a) or any other long term capital gains, then the tables are not used directly...because a lot of those dividends or capital gains are taxed at rates lower than the tables.

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