Form 1041 decedents estate

[gabjo00]

Decedent estate return with nothing other than bond redemption interest of $140K taxable income.  Proseries calculates the tax as $55K. There is no supporting calculation for the tax in the program, when I  looked at government tables, I calculated the tax to be approx. $27K. Can someone please help me figure out where I can get the details behind how proseries calculates the $55K and how to make sure this is being calculated using the correct tax table.

[jeffmcpa2010 · Accepted solution]

Real quick I come up with a little over 50,000

140000-13050 = 126950 x .37 = 46971 + 3146 (for the 0 -13050amount) = 50117

Not sure how you are getting around 27K

[gabjo00]

Thank you so much. I was looking at something outdated and having a melt down.  Also I wasted 2 hrs on this this meltdown...welcome to tax season.  Thank you for setting me straight.

[jeffmcpa2010]

I do have a question though.

Was this interest on Bond's  - (Ordinary Income) ? or 

Redemption (IE treated as Sale) of Bonds which would be capital gain ?

[gabjo00]

It was in box 3 of the 1099-INT.  I think its Ordinary Income right?

[sjrcpa]

Yes. Don't forget there is Net Investment Income Tax in addition to income tax.