With taxable income of $130,000, can I use the Qualified Dividends and Capital Gains Worksheet to determine tax owed?

[artjog1234]

With taxable income of $130,000, can I use the Qualified Dividends and Capital Gains Worksheet to determine tax owed?

[VolvoGirl]

Yes.  And you use it anytime you have dividends and gains/losses.   Turbo Tax will automatically use it.

There are like 7 different ways to calculate the tax.
It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, 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. In the online version you need to save your return as a pdf file and include all the 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.

[artjog1234]

Are there IRS Tax Tables for taxable income above $100,000? If not, how is the tax determined?

[Mike9241]

there is a tax rate schedule when taxable income goes over $100k. but if you have long-term capital gains or qualified dividends you can't use the tax tables or tax rate schedule. Turbotax automatically uses the capital gain./qualified dividend worksheet. a copy is on page 36 of 1040 instructions for 2022