Qualified Dividends Not Correct

[Taxnofun]

It does not appear Qualified Dividends and Capital and Tax Worksheet is Correct.

 on the form line 19 is 1,002, total taxable income on the 1040 is 1,189

  Line 22 says Figure the tax amount on line 5. ($187).   If the amount on line 1 is less than $100,000 use the tax table to figure the tax.  Under federal tax tables is says The tax rate on qualified dividends for a single person if income is under $41,676 us 0%.

So why is the tax calculated in turbo tax $19.00 rather than $0

[dmertz]

The amount on line 5 is entirely taxable as ordinary income.  Line 5 does not include any of your qualified dividends because they were included on line 4 which was subtracted from the amount on line 1 to produce the amount shown on line 5.

[Taxnofun]

At what tax rate?  The regs say "Your “qualified” dividends may be taxed at 0% if your taxable income falls below $44,625"

The taxable income in this case is $1,189

[dmertz · Accepted solution]

You have $187 of taxable income that is neither qualified dividends nor long-term capital gains.  The tax table shows that the tax on $187 is $19.  That's a tax rate of 10%, the lowest regular tax bracket.  Of your $1,189 of taxable income, $1,002 is being taxed at the 0% long-term capital gains rate and $187 is being taxed at the 10% ordinary income rate for a total tax of $19.