tax calculation

[sarv2000]

my status mfj, taxable income around 75k, but turbotax is calculating my tax liability at $0. Seems nice but also seems incorrect. what do i do?

[Carl]

Please confirm it's an actual tax liability, and not your tax refund that is $0.  What does it show on line 24 of your 1040?

[sarv2000]

I did confirm that. Line 24 is 0. The refund is at line 34 which reads the same as line 33 (Total payments)

[VolvoGirl]

What kind of income?  If you get 1099R income check the taxable amount on lines 4b and 5b.  And what is your AGI on line 11 and taxable income on line 15?

[DoninGA · Accepted solution]

Did you enter any capital gains or qualified dividends on your tax return?  If so, your taxes on taxable income are not calculated using the IRS tax tables but the Qualified Dividends and Capital Gain Worksheet.

Go to the IRS Form 1040 Instructions for the QDCG Worksheet page 36 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page36

[sarv2000]

AGI line 11 is 100K+ and line 15 is 75k +

[fanfare]

At your income level capital gains or dividends can put in the "sweet spot" where income tax is zero.

@sarv2000 

[NCperson]

@sarv2000 - look at the tax lines beginning on Line 18 (form 1040)

Line 18 is the calculated tax, but then

lines 19-21 are tax credits so that the tax liability is on Line 22.  what number is on Line 22? 

is it possible that by total coincidence - it happens - that the payments equal the tax liability, so the net is zero - no tax due and no refund?????

[sarv2000]

Thank you. I filled out the work sheet you mentioned and it works out. 

[sarv2000]

Thank you, I filled out the worksheet you mentioned and it worked out. Thanks again

[Mike9241]

is there an amount on line  3a? 7? 16? 17? 

we can't see your return so are groping in the dark. 

however, with as little as about $47,200 in qualified dividends and/or net-long term capital gains your tax could be zero. see if there is a qual div/cap gain worksheet in your file review it.