Tax Discrepancy

Forum|Forum|3 years ago
February 3, 2023
2 replies
22 views

There is about a $900 difference between my tax as listed in the IRS tax tables and the number listed on line 16. None of the boxes on line 16 are checked. I checked this against the 2022 Form 1040 instructions and the tax brackets.

Best answer by VolvoGirl

There are like 7 different ways to calculate the tax.
It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, 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 the 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.

See….(this should say line 16)
https://ttlc.intuit.com/community/forms/help/form-1040-line-11-amount-is-less-than-standard-irs-tax-table/00/25752

T

Texas Roger

Level 15

The tax tables do not account for income that is taxed at different tax rates such as the tax on capital gains. Could that explain the difference?

L

Linda1750Author

Level 2

Thanks for responding. No stock sales last year only $140 in gains reported on Form DIV.

VolvoGirlAnswer

Level 15

There are like 7 different ways to calculate the tax.
It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, 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 the 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.

See….(this should say line 16)
https://ttlc.intuit.com/community/forms/help/form-1040-line-11-amount-is-less-than-standard-irs-tax-table/00/25752

Mike9241

Level 15

we can't see your return. usually, it's because of the lower rates for capital gains and qualified dividends or even the QBI deduction on line 13 but this apparently is not your case. so after checking again that you used the correct line and column in the tax rate schedules based on your filing status on page 1 and coming to the same conclusion contact support who can look at your return

5am-5pm Pacific Time (8-8 Eastern) Monday - Friday
https://support.turbotax.intuit.com/contact

800-446-8848

Mike9241