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Incorrect Tax Calculation?

LinZee
Level 2

For 2020, I have a single tax client who had AGI of $33,942 on Federal 1040.  After subtracting the $14,050 standard deduction, it leaves her with taxable income of $19,892.  There is no additional tax or credits and no recovery rebate credit.  The program calculated her tax to be zero.  When I check the tax tables, it looks like there should be tax of $2,188.

Does anybody have any ideas why there would be no tax when the taxable income is $19,892 or where in the program I can see how the tax was determined? 

This has me concerned because I have been relying on the program to accurately calculate the amount of tax.  

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1 Best Answer

Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15

Look for the qualified dividends worksheet in the list of forms in use and follow the money.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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8 Comments 8
PATAX
Level 15

Long-term capital gains or qualified dividends

Just-Lisa-Now-
Level 15
Level 15

Look for the qualified dividends worksheet in the list of forms in use and follow the money.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
LinZee
Level 2

That is making sense to me now.  Thank you!!

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abctax55
Level 15

As other folks/posters solved the issue for you, you *really* should give one of them the solve, not yourself.

"*******Tax software is no substitute for a professional tax preparer*******
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LinZee
Level 2

I think it's fixed.  I am new to this.  Thanks!

abctax55
Level 15

No problem... and it really doesn't matter other than notifying future searches of what actually DID work  :-). 

Intuit doesn't reward us IN ANY WAY for being helpful even tho this forum solves way more problems/issues than the official support folks do.

Oh, and welcome to the zoo.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
PATAX
Level 15

@abctax55 👍 this forum is more informative than CPE seminars and tax publications... And imo it is more helpful than calling tech support.... I have learned a lot on this forum...Thanks to all...👍🐕

abctax55
Level 15

@PATAX 

Way back in the old TaxAlmanac days I lobbied (to no avail...) to have all the time I spent researching & learning there qualify for CPE.  Oh well.... I still became a better tax pro because of it.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"