tax rate schedule, 2019, 22% bracket - error?

[akdancer]

TurboTax shows 22% bracket for MFJ starting at $78,750.  IRS documents show it starting at $78,950 - $200 difference.  What's up?

[tagteam]

Where, exactly, are you seeing this error? The screenshot below is from a test return and appears correct.

[akdancer]

Thank for the reply.  As shown, it's ok.  BUT - my question is about the threshold value for the 22% bracket.  Your example shows it starts at $78,751.  Per what I see in IRS docs, it starts at $78,951.

[tagteam]

My screenshot shows the bracket at 12% for $78,751.

[akdancer]

I didn't see your screenshot.  I've added one, from Pub 17 (2019), p 257.  22% bracket starts at 78,950

[akdancer]

Ah, the screenshot from the previous post.  

And, my ref to Pub 17 should have said p. 255.  (p. 257 was in the .pdf file).

[tagteam]

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@akdancer wrote:

I didn't see your screenshot.  I've added one, from Pub 17 (2019), p 257.  22% bracket starts at 78,950

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Correct and that is where TurboTax starts the 22% bracket.

[akdancer]

Below is what you wrote, and $78,751 <> $78,951.

My screenshot shows the bracket at 12% for $78,751.

[tagteam · Accepted solution]

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@akdancer wrote:

.....BUT - my question is about the threshold value for the 22% bracket.  Your example shows it starts at $78,751.  Per what I see in IRS docs, it starts at $78,951.

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I am not certain whether or not we are looking at the same thing or talking around each other. 

My screenshot shows taxable income of $78,751 and a tax bracket of 12%, not 22%.

[Opus 17]

@akdancer  Specifically why do you think TurboTax starts the 22% bracket at $78,751?

The screenshot posted by @tagteam  shows that if they create a fake return with income of $78,751, it is still taxed at 12%, which is correct.  We all agree that the IRS documents show that the brackets starts at $78,951.  Where exactly in the program do you believe you are seeing the 22% tax bracket start at $78,751?

[akdancer]

OK - I'm putting in a screenshot from Sch D worksheet.  I expected the amounts there to correspond to the tax rate schedule. Obviously they do not.  It's crazy to me, but that's the tax world.

Sorry to have bothered you about this.

[DoninGA]

TurboTax uses the same calculations on the Schedule D Worksheet as are in the IRS Schedule D Worksheet.

IRS Schedule D (2019) Instructions page 16 - https://www.irs.gov/pub/irs-pdf/i1040sd.pdf#page=16

[Opus 17]

How strange.  At least for purposes of this specific worksheet, the IRS is using the wrong figure—or, it is the right figure but it is calculated differently than the tax brackets.  I wonder why.  

[tagteam]

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@Opus 17 wrote:

How strange.  At least for purposes of this specific worksheet, the IRS is using the wrong figure—or, it is the right figure but it is calculated differently than the tax brackets.  I wonder why.  

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Strange, indeed, but it is calculated differently based upon the table below.