I just filed a 1040 with the IRS, however looking at it my tax amount looks too low when I do the calculation how can I get a review of the tax xalculation?

[loyola]

AGI of $114,669 less deduction of $27,400 calculates as $4,398 in taxes. Capital gain was $38,390 rest is standard taxable.

[ThomasM125]

The portion of your income that is represented by capital gains is normally taxed at a lower rate than the rest of your income, that may be what is confusing you.

You can see how your tax is calculated by looking on the Qualified Dividends and Capital Gain Tax Worksheet that should be available when you print your tax return.

[loyola]

Thanks. But still doesn't make sense. I have an effective tax rate of 3.4%?? There is not a tax worksheet attached when I print the form, however when I look up one the first line says enter the amount from line 10 which is a $300 adjustment to income and a new line on the form. Could the program be picking up that value instead of the value on line 11 which is AGI? The 1040 form they supplied is 1040-SR.

[ThomasM125]

I agree that $4,398 in federal tax is too low based on the numbers you give here. I'm sure the program is not picking up the $300 value instead of the AGI number though.

You didn't say what your taxable income is. You may have a qualified business income deduction that would reduce your AGI by more than just the standard deduction. 

Also, you may have credits that are reducing your tax. I suggest you look on line 15 of your form 1040 to see what your taxable income is, then work your way down through the tax and credits to see what you can discover.

If you can post what your income is comprised of and what your taxable income is (line 15 on form 1040) maybe we can help you better.

[loyola]

To : ThomasM.

Taxable Interest $59

Dividends $20,951

IRA Distributions (IRA to ROTH) $19,259

SS $36,310

Cap Gain (Long Term, Short term was a deducted loss) $38,390

Total line 9 $114,969

Adj to Income $300

AGI $114,669

Std Deduction $27,400

Qualified Business deduction $18

Total line 14 $27,418

Taxable Income Line 15 $87251

Line 16 Tax (Nothing marked) $4,398

Line 24 Total Tax $4,398

I don’t see anything in the sheets provided.I don’t understand the Business income deduction and why it pertains to me, but that came out as $18 on the form 8995. I was not provided any worksheets perhaps you can get those provided to you.

[loyola]

To ThomasM

Not sure if you are in the loop but just to be sure: I talked to someone at Turbo Tax and they gave me a case #[social security number removed]. Just don't want there to be double work involved.

[fanfare]

Your calculated tax is correct.

TurboTax knows how to calculate your tax, that's what you are paying for.

For low taxes, you can thank the Bush Tax Cuts for the Rich.

Just file it.

Oh, you already did that.

[SteamTrain]

Yep....I tried you numbers in Desktop Premier....and it looks to be dead on.

The Dividends (mostly Qualified I presume) and LT gains get a reduced rate.  Most of that $59k total was taxed at 0% and only ~ $7500 of it was taxed at 15%, and none at (oops 0% )20%.

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To see the actual tax calculation sheet, you need to get into the Print Center to save a PDF copy of your tax file...but make a selection to include very sheet possible.....not just the filed tax return.