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smittal25
New Member

Wrong Federal Tax calculation in Turbotax 2023 delux version

I am using 2023 Delux version of Turbotax. It calculates federal tax more than the tax table.

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3 Replies

Wrong Federal Tax calculation in Turbotax 2023 delux version

Where are you seeing this?

The taxable income on the Form 1040 is on line 15.  The tax on the taxable income is on the Form 1040 Line 16

rjs
Level 15
Level 15

Wrong Federal Tax calculation in Turbotax 2023 delux version

The tax table is only one of seven different methods that can be used to calculate your tax, depending on what is in your tax return. Your tax return must require one of the other methods. The most common reason that you cannot use the tax table is that your income includes qualified dividends or long-term capital gains, which are taxed at lower rates.


In the IRS Instructions for Form 1040, look at the instructions for line 16. Starting in the right column on page 33 it explains the conditions for determining which of the 7 methods to use to calculate the tax.


If you are using the CD/Download TurboTax software you can see which method TurboTax used by looking at the 7 checkboxes in the Tax Smart Worksheet. You can see the Tax Smart Worksheet in forms mode. It's between lines 15 and 16 in the first section of the Form 1040 or Form 1040-SR Worksheet.

 

Wrong Federal Tax calculation in Turbotax 2023 delux version

Could it be some Additional taxes on Schedule 2? 
https://www.irs.gov/pub/irs-pdf/f1040s2.pdf 

And it's still early.  There will be many program updates.  What kind of income do you have?  Are you using the Online version or the Desktop CD/Download program?  

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