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gbonge25
Level 2

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

1st $9,875 at 10% and remaining $14,154 at 12% arrives at $2,686 tax owed.  I don't trust the $2 calculated by Turbo Tax.
1 Best answer

Accepted Solutions
ThomasM125
Expert Alumni

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

At your income level, your dividend and long term capital gain income would not be taxable. It would still show as taxable income, but the tax rate is 0%, so there would be no tax on it.

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5 Replies
npierson7
Level 1

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

Yes, you are right and the total tax amount cannot be $2 in your case. However, the amount could be attributable to the difference you need to pay after your withholdings and credits were calculated, not the tax liability.  

gbonge25
Level 2

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

Line 15 (Taxable Income) is $24,092.  Line 16 (Tax) is $2.  Any credits are picked up later.  For me $4,400 for estimated tax payments (line 26).  There is no way I can file this return and I've paid for it.  I don't know what to do now.  This looks like a calculation error to me.

npierson7
Level 1

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

That could be an error.

You might create a diagnostic copy and  we will look at it.
Click on tax tools in the left menu bar, then Tools, then Share my file with an agent, which will create a diagnostic copy.

Keep in mind that diagnostic copies wipe out your personal information such as names, SSNs, addresses, etc.  Only numbers tied into calculations and numbers inputted are shown.  This is something the agent does with you over the phone if you are in need of figuring out specific errors.

gbonge25
Level 2

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

The Diagnostic copy was created, please advise.

ThomasM125
Expert Alumni

My taxable income (single/widow) is $24,029. The tax calculated is only $2. According to the tax brackets, this should calculate to $2,686, not $2. What am I missing?

At your income level, your dividend and long term capital gain income would not be taxable. It would still show as taxable income, but the tax rate is 0%, so there would be no tax on it.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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