turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

wallyswo
New Member

In reviewing the 1040 Overview of my Turbo Tax results, I noticed that my Tax was calculated using the Qualified Dividends & Capital Gain Worksheet...is that normal?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

In reviewing the 1040 Overview of my Turbo Tax results, I noticed that my Tax was calculated using the Qualified Dividends & Capital Gain Worksheet...is that normal?

Yes, this is normal for many taxpayers.

If you have either capital gains or qualified dividends, then these income items are taxed at a different (generally lower) rate.

On the Qualified Dividends & Capital Gain Worksheet, the qualified dividends and capital gains are separated from the rest of your (ordinary) income, then each amount is taxed separately and then added back to the tax on the rest of the income.

At the bottom of the worksheet, the tax calculated on all the income by using the tax tables or ordinary tax rates is compared to the tax calculated by doing the qualified dividends and capital gains separately from ordinary income, and the smaller result is chosen for you.

View solution in original post

1 Reply

In reviewing the 1040 Overview of my Turbo Tax results, I noticed that my Tax was calculated using the Qualified Dividends & Capital Gain Worksheet...is that normal?

Yes, this is normal for many taxpayers.

If you have either capital gains or qualified dividends, then these income items are taxed at a different (generally lower) rate.

On the Qualified Dividends & Capital Gain Worksheet, the qualified dividends and capital gains are separated from the rest of your (ordinary) income, then each amount is taxed separately and then added back to the tax on the rest of the income.

At the bottom of the worksheet, the tax calculated on all the income by using the tax tables or ordinary tax rates is compared to the tax calculated by doing the qualified dividends and capital gains separately from ordinary income, and the smaller result is chosen for you.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question