Line 16 Tax = 0

[GA-Diz]

TT has calculated my AGI at $14,751. Line 16 shows 0 tax. Can this be correct? Tax tables for MFJ suggest it should be $1478.

[Critter-3 · Accepted solution]

Yes this can be correct if your income has qualifying dividends and/or capital gains on it .... switch to the FORMS mode and look at the  Qualifying Dividend and Capital Gain Tax Worksheet to  see how your taxes are being calculated.  

[VolvoGirl]

It depends on what kind of income you have.  There are like 7 different ways to figure the tax.

See the IRS worksheet on 1040 page 36 for how the tax is figured.  Turbo Tax uses the same worksheet.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

If you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.

In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

[GA-Diz]

Thanks so much! Just as you described I found how it is calculated on that worksheet.