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URL:  https://boards.fool.com/i-was-updating-my-tax-planning-worksheet-this-34468180.aspx

Subject:  Re: Taxact tax table glitch? Date:  4/10/2020  10:20 AM
Author:  Wradical Number:  130465 of 131129

I was updating my tax planning worksheet this morning.
My wife and I file jointly, already submitted using Taxact.
Without going into too much detail, our marginal tax rate is 22%.
I verified that I'm using the 2019 tax tables.
For some reason, the tax (1040 line 12b) from Taxact is coming out $94 lower than I expect it to be.
The IRS tax table and my own calculations in my spreadsheet appear to agree with each other.

Anyone else experience this?
I allow for the possibility that I could be doing something wrong, but the steps from line 11b to 12b seem pretty straightforward.

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Also without going into too much detail, my first guess would be:
Do you have any qualified dividends or long-term capital gains, including capital gain distributions? If so your calculations need to reflect the use of the QDLTCG worksheet.

And you can use a shortcut method, rather than every line, in many cases. But you do have to:
1. Back out the qual. divs. and LT gains from your taxable income,
2. Figure the tax on the balance of your taxable income.
3. Figure the tax on the qual. divs. and LT gains, which may be zero or up to 15%. If you're in the 22% bracket, 15% would be the relevant number, or maybe a little less, depending on how close you are to the threshold.
4. Add the two together.
This is basically what the worksheet does, but it's technically more complicated.

If that doesn't explain the difference, then I wouldn't venture a second guess without seeing your return. If your qualified dividends and LT gains are about $625, that would do it.

Bill
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