How do I see details of the tax computation in my return? I.e., how the amount on Line 16 of 1040 form is calculated? Why am I not given that information with my return?

Forum|Forum|11 months ago
April 29, 2025
2 replies
0 views

My return has Schedule D. When I calculate the tax using the Qualified Dividends and Capital Gain Tax Worksheet, I get a different (much lower) amount for the tax than TurboTax gave me.

rjs

There are seven different methods that can be used to calculate your tax, depending on what is in your tax return. Your tax return might require one of the other methods instead of the Qualified Dividends and Capital Gain Tax Worksheet.

In the IRS Instructions for Form 1040, look at the instructions for line 16. Starting in the right column on page 33 it explains the conditions for determining which of the 7 methods to use to calculate the tax.

If you are using the CD/Download TurboTax software you can see which method TurboTax used by looking at the 7 checkboxes in the Tax Smart Worksheet. You can see the Tax Smart Worksheet in forms mode. It's between lines 15 and 16 in the first section of the Form 1040 or Form 1040-SR Worksheet.

If you are using Online TurboTax, here's how to view the Tax Smart Worksheet which shows what method TurboTax is using to calculate your tax.

In Online TurboTax open your return interview, and in the left menu column scroll down to TAX TOOLS, then subtab TOOLS.
In the Tools window choose View Tax Summary.
While on the Tax Summary screen go to left menu column and under Federal tab choose "Preview My 1040".
This opens up the Form 1040 Worksheet and Schedules 1-3.
On the Form 1040 Worksheet scroll down to between lines 15 and 16, and there should be a Tax Smart Worksheet that shows what method TurboTax used to figure your tax.

(Thanks to user mesquitebean for the instructions for TurboTax Online.)

A frequent reason that the tax on line 16 is more than expected is that you have claimed the foreign earned income exclusion. If you claimed the foreign earned income exclusion Form 2555 would be included in your tax return, and the exclusion would appear on Schedule 1 line 8d.

h_resatAuthor

Thanks very much for very detailed response. I much appreciated it. I am using the online version. I however do not know what opening my return interview mean. I don’t see any TAX TOOLS menu, either. I can only download the pdf version of my filing, which is missing the tax calculation sheet. I can download the package in TurboTax .tax format but I have no way of opening that format. Any more pointers that you can share? Thanks bunches.

DawnC

On the left side menu when you are signed into your account, you should see the Tax Tools menu. Expand that section and select the Print Center.

If you already filed your return, you will need to scroll all the way to the bottom and click on Add A State to unlock your return and see all the menu options. This TurboTax FAQ has the instructions if you already filed.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

rjs

If the Tax Smart Worksheet shows that TurboTax used the Qualified Dividends and Capital Gain Tax Worksheet, compare the worksheet in TurboTax to your own calculations to see what is causing the difference. If you are using the desktop TurboTax software you can look at the worksheet in forms mode. If you are using TurboTax Online, print your tax return with the option to include government and TurboTax worksheets to see the worksheet.