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fansy0829
New Member

If Taxable Income is between 100,000 and 163,300, the Tax Liability TurboTax calculated is incorrect based on the tax table in 1040 form instruction.

 
3 Replies
DawnC
Employee Tax Expert

If Taxable Income is between 100,000 and 163,300, the Tax Liability TurboTax calculated is incorrect based on the tax table in 1040 form instruction.

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
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fansy0829
New Member

If Taxable Income is between 100,000 and 163,300, the Tax Liability TurboTax calculated is incorrect based on the tax table in 1040 form instruction.

The breakdown of total tax says: "The $xx,xxx of total tax on your return comes from adding up your $xx,xxx of total taxes before credits and other taxes are applied and the $xxx of other taxes you have to pay." What is included in the "other taxes"?

Cynthiad66
Expert Alumni

If Taxable Income is between 100,000 and 163,300, the Tax Liability TurboTax calculated is incorrect based on the tax table in 1040 form instruction.

The Other Income Taxes summarizes ALL of the taxes you have paid either directly or through withholdings on Forms such as W2s, 1099s, etc for both your federal and state returns. For example, that number would include both of your Federal and state withholdings from your W2s.

 

Below is the list of other taxes and see the link for the Actual Schedule 2 of the 1040 where these are calculated.

 

4 Self-employment tax. Attach Schedule SE

5 Unreported social security and Medicare tax from Form: a 4137 b 8919 . 5

6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required . . . . . . . . . . . . . . . . . . 6

7a Household employment taxes. Attach Schedule H . . . . . . . . . . . . .

b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7b

8 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s)

9 Section 965 net tax liability installment from Form 965-A . . .

10 Add lines 4 through 8.

These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b . . . . . . . . . . . .

 

 

Link to Schedule 2

Schedule 2 - Other Taxes

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