Could my tax software possibly be correct?!

It's possible if all of your taxable income came from qualified dividends and/or long-term capital gains.

Ira Smilovitz

Probably 80% is those two. So I should go with it or complain to H&RBlock?

As Ira has told you... you can only come up with $968 if 100% of the taxable income is qualified dividends and LT capital gains. If you have

I am struggling with this...

If I am right so far, where are the directions for that worksheet, and I will try to work through that.

Thanks.

Try the form 1040 instructions, page 43

Isn't the point of using tax software that it figures this all out for you? Just fill in all the blanks that are relevant to you and it will file the appropriate forms.

And doesn't the software have all the instructions in it? I use TurboTax, and every form includes the IRS instructions for it.

Okay, I went through the worksheet in the 1040 instructions. It is rather different than the worksheet the tax software uses, but gives the same answer.

Apparently deductions and exemptions go against capital gains, interest, and ordinary dividends. All I am left with is $78,000 of qualified dividends, and the first $72,000 of that is tax free. So I am only paying tax on $6,000 of income. Shame NYS doesn't follow the same practice! I am not sure how this makes sense, but I think it is correct.

This it the first year I haven't been killed by AMT. Did they change that?

Although I am not finished with my taxes, I did go to my TurboTax Form

As far as I am concerned, the Government is putting us into involuntary servitude to figure out our taxes. At least before the French Revolution, the tax collector in France compelled you to pay what they thought you should. :=(

The taxing of LTCG and/or qualified dividends could be made easier by using a method from history. I.e., X% of Type A gains/dividends are excludable from income; Y% of Type B gains are excludable, etc.

Can you get that sent into Congressional committee ASAP? :-)