Tax Calculation

Forum|Forum|5 years ago
March 15, 2021
1 reply
7 views

I have income after deductions of approximately $70000. Turbotax calculated a tax on this of approximately $1000. Can this be correct. Seems way low!

SweetieJean

Alumni - Champ

Federal or state? Any Long Term Capital gains taxes at 0%?

A1403Author

Level 2

Federal Return. There were only $500 of Cap Gains

VolvoGirl

Level 15

It depends on what kind of income you have, 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-table/00/25752