2020 TT using wrong IRS Tax chart?

[SloDriver]

Status:  Filed as Married filing jointly

IRS form:  1040

Lines 15 (Taxable Income) and 16 (Taxes)

Software:  TT Deluxe

Line 15 is at $45,055

-------------------------------------------------------------

I was comparing my 2020 tax filing across different platforms and found a discrepancy between TT and a couple of online tax software providers.  All calculation and deduction numbers in the 1040 matches except in line 16 of my 1040 form which I believe is based on the amount in Line 15 (Taxable income).

According to the 2020 IRS taxable income chart my line 16 (taxes) should be $5,014.  In TT, it has it listed as $4,750 which puts my Line 15 income at $42,850-$42,900.

At the end there is about a $300 difference in refund.  I'll get $300 more using TT because of the lower tax.

Is anyone else seeing this error in their TT paperwork?  I've been using TT for years and my first comparing it with other tax software.  If TT has been under reporting all this time, that means I'm going to get penalized heavily if the tax man finds out.

---------------------------------------------------------------

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

[macuser_22]

---

@SloDriver wrote:

Status:  Filed as Married filing jointly

IRS form:  1040

Lines 15 (Taxable Income) and 16 (Taxes)

Software:  TT Deluxe

Line 15 is at $45,055

-------------------------------------------------------------

I was comparing my 2020 tax filing across different platforms and found a discrepancy between TT and a couple of online tax software providers.  All calculation and deduction numbers in the 1040 matches except in line 16 of my 1040 form which I believe is based on the amount in Line 15 (Taxable income).

According to the 2020 IRS taxable income chart my line 16 (taxes) should be $5,014.  In TT, it has it listed as $4,750 which puts my Line 15 income at $42,850-$42,900.

At the end there is about a $300 difference in refund.  I'll get $300 more using TT because of the lower tax.

Is anyone else seeing this error in their TT paperwork?  I've been using TT for years and my first comparing it with other tax software.  If TT has been under reporting all this time, that means I'm going to get penalized heavily if the tax man finds out.

---------------------------------------------------------------

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

---

The tax table is one is 7 ways of computing the tax.

You probably have qualified dividends or capital gains that have a lower tax rate and have a "Qualified dividend and Capitol Gains Worksheet" that computed the correct tax.

[SloDriver]

Hi @macuser_22

I used TaxAct, FreeTaxUSA, and TT and my "Qualified dividend and Capitol Gains Worksheet" is the same on all the software.  My taxes are simple with just W2s, interest from saving account, and 2 sales from e*trade, standard deduction, and 2 dependent credits.  Nothing complex or foreign related.

All the line items matches up to point of line 16 which then throws off lines 18, 22, 24, 34, and 35 further down that computes the final refund number.

Isn't there 1 standard chart to look at to get the number to input on line 16 when it's based on the number from line 15?  Are you telling me there are 7 ways to get the amount for line 16?

Thanks!

[NCperson]

@SloDriver as @macuser_22  stated, there are different tax charts for different purposes. 

The chart you are looking at are for 'ordinary income' only.   I suspect the sum of lines 3a (qualified dividends) and 7 (capital gains) are around $2200. 

These two lines much be subtracted from $45,055 before looking up the tax in the table as these lines are taxed at the capital gains rate, which at your income level would by 0%. 

your tax would be $5014 only if line 3a and 7 were zero.  But you stated you sold stock, so that is not going to be the case.  (I see the $5014 in the table)