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rbernardkohn
New Member

Why doe Turbo Tax calculate my 2020 taxes much lower than using the Tax rate schedule?

Turbo  Tax calculates my tax at $5785. The 2020 IRS Tax rate schedule calculates it at  $7800.
4 Replies
SweetieJean
Level 15

Why doe Turbo Tax calculate my 2020 taxes much lower than using the Tax rate schedule?

Any Long Term Capital Gains?  They are taxed at a lower rate.

rbernardkohn
New Member

Why doe Turbo Tax calculate my 2020 taxes much lower than using the Tax rate schedule?

Thanks for your reply. According to TurboTax Line 15, Taxable Income, is $68516. I had a long term capital gains loss, so no tax there. No short term capital gains. Line 16 Tax is $5782. According to the IRS Tax Rate Schedule, I'd be in the 12% bracket and my tax would be $7827. The difference is more than $2000. Why?

SteamTrain
Level 15

Why doe Turbo Tax calculate my 2020 taxes much lower than using the Tax rate schedule?

How much on Line 3a Qualified dividends?  Those aren't taxed a the full rate either.

 

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
SteamTrain
Level 15

Why doe Turbo Tax calculate my 2020 taxes much lower than using the Tax rate schedule?

Make sure line 7 on the 1040 is really a loss too.......Edited probably in parenthesis to show a loss... can be as much as -3,000  but no more.

 

Edit:  Just checked....Looks like they use a "-" sign, not a parenthesis for a loss

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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