Taxable Income but no tax calculated

[rob22usmc]

Hi all,

I’ve hit a block and I’m not quite sure where else to look. I have a MFJ couple who have a schedule C (net loss), couple W2’s, and some LTCG. Fed Taxable income is in the 35k ballpark, but there isn’t any tax getting calculated. I’ve doubled checked their details are entered MFJ (name, SSN, DOB, etc). Any suggestions on where I can look next? Thanks in advance 

[poolcleaner · Accepted solution]

Check the Qualified Dividends and Capital Gains Worksheet and you will probably see that the capital gains and/or qualified dividends are not being taxed. Pleasant surprise for you and your clients!

Another Former All Star

[rob22usmc]

Yes I did see that they’re at the 0% LTCG tax bracket. Though I’m confused, because wouldn’t the income that doesn’t fall under capital gains such as ordinary income (W-2s), still be taxed at their respective tax bracket?

[poolcleaner]

Follow the answers on Line 3 of that worksheet and you'll see that it the LTCG and Qualified Dividends that are in control of the worksheet.

[BobKamman]

Not so pleasant surprise for the widows and orphans who have to pay more tax on their survivor pensions because rich people get a tax break on unearned income.