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posted Jun 1, 2019 12:50:36 PM

I cannot validate the tax calculation made by turbo tax on my 2017 return with the IRS tax table. What table (formula) is used by Turbo Tax?

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1 Best answer
Level 15
Jun 1, 2019 12:50:37 PM

The tax table is only used for ordinary income...essentially wages, and other simple income, Interest, pensions...

.......but NOT investment income..not capital gains and not Cap gains on a 1099-DIV form.

There are ~7 different tax calculations...based on exactly what information you entered...but usually, most folks use the "Qualified Dividends and Capital Gain tax worksheet"

1) If you used the Desktop software, open your tax file and look at the form 1040 in Forms Mode, and there is a worksheet just above line 44 that shows what calculation method was used...and you can go to that calculation worksheet

2) If you used the Online software..log into that account, go to "Previous Taxes" then download a NEW PDF file of the 2017 taxes....the PDF file available now (after the end of the tax season for 2017) contains all of the forms and the backup worksheets used to prepare your tax file...the tax calculation worksheet should be in there. start by looking for the  "Qualified Dividends and Capital Gain tax worksheet",  and if that is not there, it would have to be on a different worksheet.  

1 Replies
Level 15
Jun 1, 2019 12:50:37 PM

The tax table is only used for ordinary income...essentially wages, and other simple income, Interest, pensions...

.......but NOT investment income..not capital gains and not Cap gains on a 1099-DIV form.

There are ~7 different tax calculations...based on exactly what information you entered...but usually, most folks use the "Qualified Dividends and Capital Gain tax worksheet"

1) If you used the Desktop software, open your tax file and look at the form 1040 in Forms Mode, and there is a worksheet just above line 44 that shows what calculation method was used...and you can go to that calculation worksheet

2) If you used the Online software..log into that account, go to "Previous Taxes" then download a NEW PDF file of the 2017 taxes....the PDF file available now (after the end of the tax season for 2017) contains all of the forms and the backup worksheets used to prepare your tax file...the tax calculation worksheet should be in there. start by looking for the  "Qualified Dividends and Capital Gain tax worksheet",  and if that is not there, it would have to be on a different worksheet.