Federal tax liability incorrect

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I'm filing Married filing jointly and have an AGI of $91992. Turbo Tax shows my tax liability is $8166. However, when I look in IRS 1040 Instructions, it show my tax liability is $11469.

SteamTrain

Level 15

There are different Tax calculation sheets for different purposes.

LT Capital Gains (line 7 of the 1040) and Qualified dividends (line 3a of the 1040) are included in your AGI and Taxable income values, but the tax table is not used for those $$.....some of those $$ are taxed at 0%. Thus the line 16 tax is usually lower than the tax tables would indicate.

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

DawnC

Employee Tax Expert

The tax table you are looking at is for ordinary income only. Some income is taxed at different rates (Qualified Dividends/Long-Term Capital Gains are taxed at a lower rate than ordinary income). If you have any of the following included in your return, the tax table doesn't give you accurate results:

Qualified Dividends and Capital Gain Tax Worksheet
Schedule D Tax Worksheet
Schedule J
Form 8615
Foreign Earned Income Tax Worksheet

The tax calculation can be found on the worksheet titled Form 1040/1040SR Wks. The tax computation is on the Tax Smart Worksheet which is located between Line 15 and Line 16. If A1 is checked, your tax liability came from the tax tables. But if any other line has a checkmark, you will have to go to the corresponding worksheet to see the tax calculation. In the example below, you would need to look at the Qualified Dividend/Capital Gains Wks to see how the tax was calculated.