Tax calculation seems off

[delta_hotel]

Hello experts,

I have noticed that the tax calculation from turbo tax seems to be slightly off.  That is, I'm single filing for 2021 with a taxable income of $64,001; line 15 on 1040.  Using the tax smart worksheet the calulated tax is $9,472.  If I use the tax tables I get a tax due of $9,834.  If I calulate by hand, I get a tax of $9,828.72.  This is quite a bit different than what Turbo tax calculates of $9,472 (Line 16, 1040).  Anyone have a idea were my method for determining the tax is off by approximately $400?

Thanks in advance.

Dave

[VolvoGirl · Accepted solution]

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

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

Turbo Tax uses the same worksheet.  Save your return as a pdf file with all the worksheets to see it.

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-...

[delta_hotel]

Thanks Volvo girl.  You nailed it!  Make it a good rest of the day.