1040 Tax Question

[homestead]

I use H&R Block software to figure my taxes for 2019 and wanted to investigate how my taxes were calculated. The software uses 1040 form and on line 11b for taxable income is $14,345. The next entry with data on the form shows at line 12a a tax of $1153.

I am using married filing jointly and the tax tables show any amount below 19400 the tax is 10%. Anyone know why the form would only show 1153 owed instead of 1434?

[scrabbler1]

Do you have any qualified dividends or long-term cap gains? They are taxed at 0% at your income level, and the tax calculation uses a combination of the tax table and a worksheet in the tax booklet (you don't file it as a form).

[homestead]

Yes I have both qualified dividends and long-term cap gains. I guess I would have thought that would have been figured before the taxable 11b line. Had 1411 exempt interest dividends and 1612 in long term gains.
Do you know what form/worksheet they would use to factor those into final taxable income?

[Jerry1]

Quote:

Originally Posted by homestead Yes I have both qualified dividends and long-term cap gains. I guess I would have thought that would have been figured before the taxable 11b line. Had 1411 exempt interest dividends and 1612 in long term gains. Do you know what form/worksheet they would use to factor those into final taxable income?

Schedule D Tax Calculation. It’s not schedule D, but a calculation form using Schedule D information.

[scrabbler1]

Page 33 of the instruction booklet has the worksheet.


A quick-and-dirty calculation using the data you posted gets me very close to the $1,153 tax. I subtracted (1411+1612) from your $14,345 TI to get $11,322. Multiply that by 10% to get $1,132. Not knowing all your income tax data could cause the difference. I suggest you try using the somewhat tedious worksheet, assuming it is compatible. (There are some exceptions to using that worksheet.)

[Masquernom]

I just spent this morning checking the same calculations. I also use H&R Block software. It's a worksheet listed under Schedule D. You have to go into the FORMS menu, default will only show you the forms to submit. You have to click on SHOW ALL FORMS and select Schedule D. Then scroll down to where it shows the worksheet.

[homestead]

Thanks, Found it.

[Masquernom]

Yes, that's it. I hunted through the software a long time looking for a separate worksheet listing. Finally found it buried inside Schedule D.

[homestead]

Thanks
Remember the good ol' days when we had to do all this from the forms and instructions.
I am working on an calculator application for IRA->Roth conversions & RMD's calculating fed and state taxes out 25 years.

[RunningBum]

Quote:

Originally Posted by Masquernom Yes, that's it. I hunted through the software a long time looking for a separate worksheet listing. Finally found it buried inside Schedule D.

Yeah, I ran into that the year I tried HRB. TT shows the separate worksheet, so it's much easier to find.