Turbotax Delux Desktop 2023 calculating my taxes wrong?

[northwestmoto]

Line 15 on f1040 is $119,829.  Value Turbotax calculated for line 16 is $16,917.  Instructions from IRS f1040 shows for married filing jointly, should be calculated as (119,829 x 0.22) - $9385 = $16,977.  

BTY, the Turbotax online help documentation on tax rates is completely wrong in this, saying that for this income level and filing status, it should be $2200 + 0.12 x (119,829 - 22,000) = $ 13,939.   

So what is going on? 

[BillM223]

Do you have Qualifying Dividends and/or Capital Gains? This is a common reason why taxpayers are confused as to how their taxes are calculated.

If this is the way your return is done, then look for a worksheet in your return showing the calculation of the tax, like "Qual Div/Capgns".

[SteamTrain]

@northwestmoto 

The 16,917 is likely lower because some of your $119,829 also include either Qualified dividends, or capital gains in that total...that can be taxed at a lower rate.

Switch to Forms Mode..and look at the 1040/1040R worksheet to see what exact tax calculation worksheet was used...it likely didn't come directly from the tax tables.

[VolvoGirl · Accepted solution]

Even though it shows up as income on the first page,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.  And you will need to use this IRS worksheet on page 15.

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

[northwestmoto]

To all those who replied - my thanks. 

After staring at the dense, confusing instructions at the top of the form 1040 tax tables, I came to the conclusion that something pertaining to dividends and capital gains was responsible.  Your prompt, informative responses have pointed me in the proper direction for undertstanding this.  

I don't want to get way "under the hood", all the time knowing the workings of the program.  But do like to know where to look to understand a number in the return.  There are times I wish the program sketched in how it determined certain numbers, perhaps just pointing to what forms the user should look at to understand the basis of an entry. 

Thanks again.