Tax Calculation

[DonHu]

The IRS entered my return in incorrectly into their system. When I discuss it with them they ask how did you calculate the tax on line 16 of 1040-SR. I show the math that gets to that number but they tell me that isn't what I asked. They again ask, how did you calculate the tax on line 16. I need the form that shows how the tax was calculated on line 16 for the 2023 tax return.

[VolvoGirl]

There are like 7 ways to figure the tax.   Even though the full amount shows up as income on the 1040 as income, 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.

[DonHu]

But how about the income that comes from 1099 and W-2 info as you wade thru the deductions etc. What sheet shows how the tax was calculated in its entirety

[VolvoGirl]

All your income will be taxed on the Qualified Dividends and Capital Gain Tax Worksheet.  It’s not just for dividends and capital gains.