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Incorrect calculation for Federal tax

Turbo tax shows a taxable income of $202,884 and a Federal Tax owed of $59,533. Using the 2021 Fed tax table for Married filing jointly I get a Fed tax of just $36,733,92. Looks like Turbo tax either added when it should have subtracted or subtracted when it should have added. Either way it's a huge error. Anyone else seeing this same problem? 

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2 Replies
rjs
Level 15
Level 15

Incorrect calculation for Federal tax

Tax owed might include other taxes besides the basic income tax. Look at your Form 1040. Line 15 is taxable income. Is line 15 $202,884? Line 16 is the income tax on the amount on line 15. What is the amount on line 16? Are any of the boxes checked on line 16? If so, that indicates additional tax from the indicated form. If no boxes are checked, line 16 should be the $36,734 that you calculated. (Everything is rounded to whole dollars.) If line 16 is less than $36,734 see my additional reply below.


Is there an amount on Form 1040 line 17 or line 23, or both? Those are additional taxes that increase the amount you owe. You can look at Schedule 2 to see what the additional taxes are. Your total tax is on Form 1040 line 24. The amount you owe is the total tax on line 24 minus the total payments and refundable credits on line 33.

 

rjs
Level 15
Level 15

Incorrect calculation for Federal tax

It's possible that the tax on Form 1040 line 16 might actually be less than $36,734. The most common reason would be that you have qualified dividends or long-term capital gain. There are number of other situations that could make the tax less. In all such cases, you cannot use the Tax Table or the Tax Computation Worksheet to calculate the tax.

 

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