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Why is the federal tax amount TurboTax calculated different (lower) than the IRS Tax table?

 
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2 Replies
DanaB
Expert Alumni

Why is the federal tax amount TurboTax calculated different (lower) than the IRS Tax table?

Qualified Dividends and/or Capital Gains? Qualified dividends and Capital Gains are taxed at 0%, 15%, or 20% tax rate depending on your income. The Qualified Dividends and Capital Gain Tax Worksheet is used to calculate the tax if you have Qualified dividends or Capital gains on your return.

Why is the federal tax amount TurboTax calculated different (lower) than the IRS Tax table?

Even though the full amount shows up as income on the 1040 as income, if you have capital gains or qualified dividends the tax on line 11 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.  

https://ttlc.intuit.com/questions/1899683-form-1040-line-44-amount-is-less-than-standard-irs-tax-tab...
 
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