TurboTax 2020 appears to calculate 2021estimated taxes incorrectly!

[mcampbellcrockett]

I used the TurboTax 2020 to generate the 1040-ES forms for 2021.  I entered $18,746 in Qualified Dividends field.  I entered -$3,000 in the Short-Term Capital Gains and Losses field.  TurboTax reported that I had $13,238 in short-term losses and $2,346 in long-term losses that were being carried forward from 2020.

I entered $164,016 income from taxable RMD, Social Security, pensions, and interest.  I left the next several pages blank and marked Over 65 on the Increased Standard Deduction page.  I skipped the Tax Credit page.

On the Estimated Tax Bill for 2021 page, TurboTax reports that I will have taxable income of $146,688.  After adding the $14,250 standard deduction for a senior over 65 to the reported taxable income, the total still doesn't equal the ordinary income that I entered.

Ignoring the fact that Qualified Dividends are taxed at lower rates, the total gross taxable income that I entered in TurboTax is $179,762.  Subtract the $14,250 standard deduction yields $165,512.  This leaves $18,746 in income that isn't being included in taxable income.

Am I missing something?

[mcampbellcrockett]

For someone that is retired with no earnings from work of income from self-employment, TurboTax 2020 ignores all data entered on the page that asks you to enter Qualified Dividends and Capital Gains and Losses instead of adding it to the amounts reported on the Other Income page.  When using EasyStep there is no indication that the Qualified Dividends and Capital Gains and Losses data must also be entered a second time on the Other Income page.

The only place where this is documented is on the Estimated Taxes and W-4 Worksheet found under Forms.  By entering the data a second time on the Other Income page, TurboTax 2020 Qualified Dividends and Capital Gains and Losses are treated as ordinary income for the purpose of computing your estimated tax liability.

At least I know why, I've owed taxes and penalties when I filed my taxes in the past.