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Level 1
posted Mar 22, 2020 6:04:14 PM

Tax Computation - Tax Summary Sheet

How is tax calculated? And why is there no federal income tax summary attached to tax return showing the step-by-step computation of taxes?

0 6 1017
6 Replies
Expert Alumni
Mar 22, 2020 6:29:04 PM

Tax computation may take place on the Schedule  D Tax Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet, the tax tables (page 241-252), the Tax Computation Worksheet (page 253-254) and the forms listed on line 12a of the Federal 1040.

 

The tax computation worksheets are routinely available among the forms in the return.

 

Depending upon the version of TurboTax that you are using, they may not be available until payment has been made for the software.

New Member
Feb 25, 2021 11:19:19 AM

My 2019 taxable inome was $21,000 yet Turbo Tax figured I owed $0 taxes.  Hiw come?

Expert Alumni
Feb 25, 2021 11:33:15 AM

It depends on what type of income is on your tax return. If you can clarify if it is derived from wages, or investments, etc, we may be able to provide more information.

 

Capital Gain Tax Rates - Topic 409 - Capital Gains and Losses

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.

Returning Member
Feb 4, 2022 8:44:41 PM

Turbotax is coming up with a different number than the tax computation worksheet.  I am filing single.  Taxable Income (line 15) = 397668.  Turbotax is calculating 112147 in tax.  The 2021 Tax Computation Worksheet and calculating manually by adding up the brackets both give 113728.05. 

 

I do not have foreign income (Form 2555) or itemized deductions or exclusions I couldn't claim because they are related to excluded income.  These would make the tax go up anyway.

 

What am I missing?

Expert Alumni
Feb 5, 2022 8:59:30 PM

Please clarify: is all income from your W-2 form? 

Returning Member
Feb 12, 2022 8:33:09 AM

Thanks for the follow up.  I figured out what was going on.  I had some capital gains income that was taxed at a different rate.  It isn't very clear how that worksheet ties in just looking at the 1040.