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Level 2
posted Apr 7, 2023 2:38:45 PM

TurboTax Desktop not calculating tax owed properly

My TurboTax Desktop 2022 shows a taxable income of over $29,000, but yet says the income tax owed is zero. This cannot be right. Is there something I can do to get it to recalculate or somewhere where I can report this issue? I don't want to file this because I know it cannot be right.

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1 Best answer
Alumni
Apr 7, 2023 2:45:12 PM

Well, that is at least hypothetically possible :-). For instance, if you have a 20,000 standard deduction with $15000 of ordinary income and $20,000 of long term capital gains and dividends, that might happen.
What I recommend, though, is that you go over everything, on the IRS forms, and make sure of the following:

1) all your income is appropriately reported

2) you've checked all the numbers and understand how the result is reached

3) now you either know why it is possible or you have an idea where things need to be corrected 🙂

2 Replies
Alumni
Apr 7, 2023 2:45:12 PM

Well, that is at least hypothetically possible :-). For instance, if you have a 20,000 standard deduction with $15000 of ordinary income and $20,000 of long term capital gains and dividends, that might happen.
What I recommend, though, is that you go over everything, on the IRS forms, and make sure of the following:

1) all your income is appropriately reported

2) you've checked all the numbers and understand how the result is reached

3) now you either know why it is possible or you have an idea where things need to be corrected 🙂

Level 2
Apr 8, 2023 8:45:33 AM

Thank you. I didn't realize there was a capital gain work sheet that calculated the tax differently than just the chart based on the taxable income.