Thanks for reporting the problem, RJS! How do I report problems to TurboTax?
I subtracted my deduction before I entered my taxable income on Nerdwallet. I think Nerdwallet's calculator is giving me the right information about how much tax I'll owe for both regular and qualified dividends/capital gains.
Taxcaster is saying I get an Other Deduction of $1,500. I guess this is for a spouse 65+ but it doesn't say, and that amount apparently is included in the standard deduction, which it calculated correctly. This should be clarified, so it would be good if someone reported it to TurboTax.
More importantly, Taxcaster doesn't seem to be calculating investment income properly. When you report ordinary dividends on your 1040 on line 3b, you include qualified dividends per the IRS instructions for form 1040, but Taxcaster apparently counted qualified dividends twice under Investments when I did that on Taxcaster. I then entered only nonqualified dividends in the ordinary dividends field. Taxcaster in that case did not report the right total and taxable income. Taxcaster did report the right total and taxable income (but I think the wrong total investments and wrong tax) when I included qualified and non-qualified dividends in the ordinary dividends field.
I think this is an error that's throwing off the tax amount owed. I think the tax amount it's calculating is too high. Look to me like it's calculating qualified dividends as regular income instead of applying the capital gains rates to it.
If you try it, even just using hypothetical data to make it easy and work with round numbers, you'll probably find the same problems.
