TT miscalculating?

[taxdali]

Turbortax calculates taxable income =  $4400, tax owed = $49 in a 10% income bracket.  Is this a miscalculation?

[VolvoGirl]

It depends on what kind of income you have.  There are like 7 different ways to figure the tax.

See the IRS worksheet on 1040 page 36 for how the tax is figured.  Turbo Tax uses the same worksheet.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

If you have capital gains or qualified dividends the tax 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.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

You can probably tell because the tax on 1040 will be less than the Tax Table

https://ttlc.intuit.com/community/forms/help/form-1040-line-11-amount-is-less-than-standard-irs-tax-...

[rjs]

Where exactly do you see "tax owed"? I think you might be looking at the amount that you have to pay, which is not the total tax on your income. If you had tax withheld during the year, the tax that was withheld is applied to your total tax. If the tax withheld is less than your total tax, you have to pay the difference.

For example, if you your taxable income is $4,400, the total tax from the tax table is $443. If you had $394 of tax withheld, you would now owe an additional $49 ($443 minus $394).

[taxdali]

I read the wrong line.  My total tax is $443.  Turbotax calculated $49 tax owed.  The irs tax sheet = $44. owed.

[taxdali]

The question was generated from the "Qualified Dividends and Capital Gains Tax Worksheet".

Line 23 calculated the tax on everything $443.  Line 24 "Tax on all Income" as $49.  Going to the IRS tax table shows $44 as the tax on everything.

I am pretty sure a pointer is misdirected and started how far the pointer is causing other problemsl.;

[rjs]

It's hard to understand what you think is wrong in TurboTax because it's not clear what forms or worksheets you are looking at, and what specific lines you are looking at. Please be precise about the form numbers or names and line numbers. There is nothing called an "IRS tax sheet." I don't know what you mean by that. Also be clear about whether you are looking at a form or worksheet in TurboTax or someplace else.

What is the "IRS tax sheet"? Where do you see that?

Why are you looking at the Qualified Dividends and Capital Gain Tax Worksheet? Do you have qualified dividends, capital gains, or capital gain distributions? If not, you should not be using the Qualified Dividends and Capital Gain Tax Worksheet. Line 23 of that worksheet is not "tax on everything" and line 24 is not "Tax on all Income."

The Tax Table, which is on pages 63 - 74 of the IRS instructions for Form 1040, does not show anything called "tax on everything." What are you looking at where you see $44 as "tax on everything"?

You said you see $44 "owed" and $44 "tax on everything." Where exactly do you see those two figures?

If you think an amount in TurboTax is wrong, please state the exact form and line number that is wrong, what the exact amount is, what you think it should be, and why.

[taxdali]

Form 1040, Line 16.

line 24 calculates tax on line 1 - $443

line 25 Tax on all taxable income (10% bracket) - $49  ----Should be $44.

The table I referred to is the 1040 booklet section showing taxes on income.

This is a simple software pointing to the wrong amount on the tax schedule tables.

[rjs]

In your previous post you said line 24 was $49. Now you say line 24 is $443. No one can help you if the details keep changing.

What are the exact amounts on the following lines of the Qualified Dividends and Capital Gain Tax Worksheet in TurboTax?

Line 1
Line 5
Line 18
Line 21
Line 22
Line 23
Line 24
Line 25

Line 25 is not a percentage of anything. It's the smaller of lines 23 and 24. Line 23 is the sum of three lines further up on the worksheet. Line 24 comes from the Tax Table.

Note that the Tax Table is built in $50 increments of taxable income. All income amounts in a particular $50 range have the same tax amount, so there will be a variance of a few dollars from an exact percentage. You have to use the amounts from the Tax Table, not a percentage.

[taxdali]

Thanks to all of your help.  I am able to navigate through the maze of forms.  

Have a great year to all of you.