tax calculation

Forum|Forum|3 years ago
July 15, 2022
4 replies
15 views

my status mfj, taxable income around 75k, but turbotax is calculating my tax liability at $0. Seems nice but also seems incorrect. what do i do?

Best answer by DoninGA

Did you enter any capital gains or qualified dividends on your tax return? If so, your taxes on taxable income are not calculated using the IRS tax tables but the Qualified Dividends and Capital Gain Worksheet.

Go to the IRS Form 1040 Instructions for the QDCG Worksheet page 36 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page36

Carl

Level 11

Please confirm it's an actual tax liability, and not your tax refund that is $0. What does it show on line 24 of your 1040?

sarv2000Author

Level 2

I did confirm that. Line 24 is 0. The refund is at line 34 which reads the same as line 33 (Total payments)

VolvoGirl

Level 15

What kind of income? If you get 1099R income check the taxable amount on lines 4b and 5b. And what is your AGI on line 11 and taxable income on line 15?

sarv2000Author

Level 2

AGI line 11 is 100K+ and line 15 is 75k +

fanfare

Level 15

At your income level capital gains or dividends can put in the "sweet spot" where income tax is zero.

@sarv2000

DoninGA

Answer

Level 15

Go to the IRS Form 1040 Instructions for the QDCG Worksheet page 36 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page36

sarv2000Author

Level 2

Thank you. I filled out the work sheet you mentioned and it works out.

Mike9241

Level 15

is there an amount on line 3a? 7? 16? 17?

we can't see your return so are groping in the dark.

however, with as little as about $47,200 in qualified dividends and/or net-long term capital gains your tax could be zero. see if there is a qual div/cap gain worksheet in your file review it.

Mike9241