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Incorrect Federal tax calculation?

I'm using Turbo tax premier 2021, the taxable income on line 15 is $130,815 and tax due on line 16 is $19,776.00. Calculating the tax due by using tax table comes to $20.276. Why the $500 difference?

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3 Replies

Incorrect Federal tax calculation?

I bet you had qualifying dividends and/or long term capital gains ... if so you do not use the tax chart.  Save a PDF of the return with the worksheets to find the QDCGTW to see how it was calculated.  

MinhT1
Expert Alumni

Incorrect Federal tax calculation?

This happens when you have qualified dividends and/or long-term capital gains which are taxed at lower rates. In your case, qualified dividends and LT capital gains are taxed at 15% while your tax bracket is 22%.

 

 

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Incorrect Federal tax calculation?

Thank you for the quick response! Immediately after posting, I went back through all the forms and found exactly what you mention in your reply! Sorry for the post! Hast makes waste!

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