Turbo Tax is calculating my tax amount too low. I have a fairly simple return with some dividends, maybe a little capital gains, mortgage interest and use the standard deduction. I spoke to one of your systems analyses on the phone, but she could not find the problem and explained that TT stands behind their software and would refund any penalties I might have. I just would like to fix the error if there is one.
TT has my tax at $8,448 but when I look at the Federal 1040 chart for MFJ and my taxable income on line 15 of the 1040 it shows my tax as $9643. This is more in line with the 22% I think it should be than your rate at about 10%.
Believe me, I like the lower rate, but I think TT has a system problem.
Is there a phone number where I can speak to someone who can understand and walk me through this problem. Your systems person told me a few times that she was not a tax expert. Several years ago, I was able to speak to a TT tax expert who was able to help me with a problem. I've been using TT since the days it was on floppy disk.
Thanks in advance for your help.
Bob B.
@bobb54 said "I have a fairly simple return with some dividends, maybe a little capital gains".
Qualified dividends (shown in box 1b of your 1099-DIV) and long term capital gains are taxed at a lower tax rate than ordinary income. Look at the "Qualified dividends and capital gains worksheet", that TurboTax prepares, for the tax calculation.
You noted that you have dividends and capital gains. Your taxes will not be calculated using the tax tables. Your taxes are being calculated either using the Qualified Dividends and Capital Gains Tax Worksheet or the Schedule D Tax Worksheet.
Using the TurboTax desktop editions, click on Forms in the upper right of the desktop program screen if using Windows or in the upper left if using a Mac.
When in forms mode scan the entries on the left side of the screen. There will be one of the two worksheets listed. Click on the worksheet to open.
Turbotax knows how to calculate your tax when you enter all your income.
That's what you're paying for.
It's sad that the TurboTax person you talked to could not tell you that.