Qualified Dividends weirdness

Oct 18, 2022 Last reply: 3 years ago 1 Replies
A

I prepare the tax return for a retired relative. She itemizes. I'd forgotten to deduct Part B and Part D premiums when itemizing her medical expenses.



I create formulas in spreadsheets for the Social Security Benefits worksheet Line 6b and the Qualified Dividends and Capital Gain Tax Worksheet Line 16.



She'd already submitted her taxes, but I redid them with the higher itemized deductions.



According to the Qualified Dividends worksheet, she owed a few hundred more in federal taxes with the higher itemized deduction!



I've really never studied how Qualified Dividends are supposed to work. There must be a capital gain phase out I'm not aware of.



I don't think I made an error in the spreadsheet calculations. I checked it multiple times for the same result.


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H

I know the Social Security worksheet and Qualified Divs et cetera (for Line 16) worksheet pretty well. I too know of no capital gain phaseout .

I do not see how adding Parts B and D Medicare premiums such that the itemized deductions rose would result in an increase in taxes.

This has to be rationally explain-able, line by line if need be, of course. If not, then I expect the problem is "operator error": Something was not input correctly, be it a spreadsheet formula or a dollar figure.

Wish I were there to look at the whole picture.

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