Tax calculation in tax planner
I am doing a projection in the tax planner. I have a client with qualified dividends and long term capital gains that is more than taxable income. As a result, the full amount of the taxable income should be taxed at preferential rates. I should be able to take the taxable income and subtract the amount of income taxed at 0% and then the remainder should be taxed at 15%. This is not what the planner is doing. I talked to a very helpful person at support and they are not able to determine how the planner is calculating tax but it is not doing the correct tax based on preferential income. I then did the calculation in the 1040 software and come up with the correct tax which makes me think the tax calculation in the planner is wrong. It looks like having Schedule C income with the qualified dividends and long term capital gain is causing an error in the calculation.
