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Level 1
posted Apr 2, 2025 1:58:59 PM

Why is tax due calculated apparently incorrect?

Regarding prior post, where the tax due (line 16) is not the amount calculated by using the tax tables in Pub 17. Called TurboTax this AM -- "sorry, can't tell you how TT calculates it -- contact a tax expert!" Since amount shown is less than what it appears it should be, concerned I'll be hearing from IRS re shortfall.

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1 Best answer
Level 8
Apr 2, 2025 2:35:10 PM

TT is usually solid on core tax calculations - tax is not purely calculated based line 15 fed into the tax tables if that's what you are looking at; do you have any long term cap gains or qualified dividends, those are separated out and taxed at 0/15/20% depending in your situation, and the remaining income is put thru tax tables to derive line 16.

 

looks like you are using TT online which I am not as familiar with as desktop but if you are able to access PDF with "all forms and worksheets" look for the "Qualified Dividends and Capital Gain Tax Worksheet" which does the calculation for line 16.  (if you are using desktop it's readily accessible throughout the tax prep process in Forms mode).

3 Replies
Level 8
Apr 2, 2025 2:35:10 PM

TT is usually solid on core tax calculations - tax is not purely calculated based line 15 fed into the tax tables if that's what you are looking at; do you have any long term cap gains or qualified dividends, those are separated out and taxed at 0/15/20% depending in your situation, and the remaining income is put thru tax tables to derive line 16.

 

looks like you are using TT online which I am not as familiar with as desktop but if you are able to access PDF with "all forms and worksheets" look for the "Qualified Dividends and Capital Gain Tax Worksheet" which does the calculation for line 16.  (if you are using desktop it's readily accessible throughout the tax prep process in Forms mode).

Level 15
Apr 2, 2025 2:37:59 PM

Even though it shows up as income on the first page,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.  See this faq

https://ttlc.intuit.com/community/forms/help/form-1040-line-11-amount-is-less-than-standard-irs-tax-table/00/25752

 

In the online version you need to save your return as a pdf file and include all 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.  And you will need to use this IRS worksheet on page 15.

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

Level 1
Apr 2, 2025 5:05:46 PM

Working backwards, I'm on a desktop, and am regularly in the Forms View, so had no trouble navigating to that worksheet. And, yes, based on some qualified dividends AND long-term capital gains I had, I clearly see in that sheet the tax I thought line 16 should have shown, on Line 24, and what showed up on Line 16 on the 1040 on Line 25, with the instructions the lesser of the two goes on the 1040. Mystery solved! You da man! Thanks!