Tax Smart Worksheet 1040 wks

[gjgogol]

hello - I was comparing the Tax Smart Worksheets from 2023 to my 2024 worksheet and noticed that in my 2023 worksheet, TT checked box 1 Tax Table, however, in my 2024 worksheet, TT checked box 2 Tax computation worksheet. I cannot figure out why different boxes where checked from one year to the next. Can anyone explain the difference to me and why it changed from 2023?

[AmyC · Accepted solution]

1. The change - is your type of income and manner of taxation changed. Perhaps you sold long term stock. 

2. The difference - Let's start with Form 1040 Tax Tables (2024) which contains the answer.

Box 1 tax table -is the actual tax tables found in the link

Box 2 tax computation worksheet: Instructions for Form 1040 Tax Tables (2024) states:

Note. If you are required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you are looking up. Enter the result on the appropriate line of the form or worksheet that you are completing.

[gjgogol]

@AmyC 

1. no change in type of income. No stocks or capital gains. However, in 2024 I do have a 1099 MISC income from the state on Schedule 1 (Other Income from box 3 of 1099-Misc), whereas in 2023 I had Taxable Grant from Form 1099-G. That's the only difference I see.

2. I don't have any of those worksheets such as the Qualified Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax Worksheet.

[gjgogol]

@AmyC  I found out why..."$100,000 or over use the Tax Computation Worksheet". In 2023 taxable income was below $100K, whereas in 2024, taxable income was over $100K. Thank you for leading me into the right direction!