How calculate tax?

[tsorms]

How does turbotax calculate my tax owed?   I get a different answer when I calculate it myself using the tax computation worksheet in J.K. Lasser's tax guide.

[Zbucklyo · Accepted solution]

Not all income is taxed at the same rate.  Long-term capital gains and qualified dividend income is taxed at a lower rate than ordinary income.  If you have self-employment income, you owe self-employment tax on that income.  Unless you have a straightforward tax situation, you can't rely on the tax tables or the tax computation worksheet.