simple interest / dividend results in Turbotax creating 96,000 deduction = no tax.

[wabarron1]

c'mom!

[KrisD15]

To clarify, we would need more information and a direct question for which to provide an answer. 

[wabarron1]

IT'S A PRETTY CLEAR QUESTION!
If a 1099 is imported for interest and dividend income, a HUGE 94,000 deduction is created in Schedule D and no tax is calculated. I will attempt to post a screen shot -- but I assume the same situation occurs for everyone. Note-- I am widowed and this is the first yr filing joint.. wife deceased. I'm pretty sure I owe more that $26 in tax.

[PII Removed]

[ThomasM125]

The return may be correct, as most qualified dividends are taxed as capital gains. If you are filing married-joint, the first $94,050 in capital gains income would not be taxed on your federal tax return. When you print out your return and schedules before you file it, you can look on the Qualified Dividends and Capital Gain Tax worksheet to see how your tax is calculated.

If you have a large deduction reported on your Schedule D I assume you are referring to a large cost basis reported, as Schedule D reports sales and cost basis of assets sold. It is also possible you see an adjustment to cost basis there. If so, you would have to review your investments sale entries to see where it is coming from.

You enter investment sales in the Wages and Income section of TurboTax, then Investments Sales, then Stocks, cryptocurrency, Mutual Funds, Bonds, etc... 

[wabarron1]

Thanks for reply. Was not aware that dividends counted as 'capital gains' and could be covered by the large allowable deduction. I finished my return and determined that a very large drop in this year's interest income resulted in my low tax total.