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forestave
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Why would there be such a hug difference (over 3,000) in what turbo tax says we owe and what the 2016 tax table says we owe? We had capital gains.

 
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Why would there be such a hug difference (over 3,000) in what turbo tax says we owe and what the 2016 tax table says we owe? We had capital gains.

If you have qualified dividends or long term capital gains, then you do not use the tax tables. The tax tables give the wrong answer in that case (too high). Turbotax uses the Qualified Dividends/Long Term Capital gains worksheet to calculate your tax properly. That worksheet takes into account the fact that QD/LTCG are taxed at your capital gains rate not as ordinary income. The Turbotax calculation is correct per IRS rules.

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Why would there be such a hug difference (over 3,000) in what turbo tax says we owe and what the 2016 tax table says we owe? We had capital gains.

If you have qualified dividends or long term capital gains, then you do not use the tax tables. The tax tables give the wrong answer in that case (too high). Turbotax uses the Qualified Dividends/Long Term Capital gains worksheet to calculate your tax properly. That worksheet takes into account the fact that QD/LTCG are taxed at your capital gains rate not as ordinary income. The Turbotax calculation is correct per IRS rules.
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