TurboTax tax computation

Can someone tell me why the tax computation (2004, single) in TT doesn't seem to agree with the IRS Schedule X at

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Reply to
William W. Plummer
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Qualifying dividends and capital gains reduce your taxes. Mostly they're a maximum of 15%.

Reply to
Charlie K

I don't see how this fits in. Line 42 is TAXABLE INCOME and Line 43 maps this into TAX. TurboTax gets a different number than I do using IRS Sched X.

Reply to
William W. Plummer

He's suggesting that if you look at the TTax "Tax Smart Worksheet" between lines 42 and 43, it might have a check mark after some line other than "A-1-Tax Table", indicating other factors are being considered in determining your tax. Gary Q

Reply to
Geezer

How far off is the tax? Do you have income other than wages? As has been stated, some types of investment income are taxed differently. This would account for a lower tax than shown in the schedule. On the other hand, if your income is high or if you have certain types of deductions you pay the Alternate Minimum Tax (AMT) which is higher than the amount shown in the link you provided. All this should be indicated in one way or another in TT.

-- Vic Roberts Replace xxx with vdr in e-mail address.

Reply to
Victor Roberts

Also note that the table on the page you reference says it is to be used to compute estimated taxes, and taxes due should be computed via the correct tax form - an indication that the tax computation is more complicated than that one schedule indicates.

-- Vic Roberts Replace xxx with vdr in e-mail address.

Reply to
Victor Roberts

Thanks, Gary. I found the "Worksheet -- Line 43" and that seems to be what I need to understand. It certainly is complicated.

Reply to
William W. Plummer

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