Why are Tax Planner 2023 Federal income taxes higher than TurboTax's 2023 taxes?

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KJTemplin
KJTemplin Member, Mac Beta Beta

In a comparison to TurbotTax's 2023 Federal income tax to QWin Tax Planners 2023 taxes on the same level of taxable inocme, Tax Planner results in higher federal income tax due than does TurboTax. Other than being conservative (prefer accuracy), what is the reason for this? Thanks.

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Answers

  • crwalejr
    crwalejr Member ✭✭✭✭
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    My guess is that TurboTax has options for taxable income or deductions that are not available in Quicken. Quicken is not intended to be as detailed as TurboTax.

  • markus1957
    markus1957 SuperUser, Windows Beta Beta
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    A couple of reasons-

    1. QDI needs to be manually input into the tax planner so that the lower rate will be applied to that amount of dividend income. This could explain a large difference.
    2. The 0% QDI/LTCG income threshold was not updated from 2022 values in the planner, but I believe that is being worked on now by the developers. This could explain a small difference.

    The difference is likely related to QDI/LTCG. Specific examples would be more helpful. QBI and such is not handled in Quicken.

  • KJTemplin
    KJTemplin Member, Mac Beta Beta
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    Thanks for the fedback. I do input the QDI amount in both Tax Planner and in TurboTax's estimated tax. But yes, there could be difernces in the amount of tax of the 2 are not the same.

    In prior years if taxable income is the same (and other inputs affecting the tax calculation), the amount of tax have been very close to the same.

    Ken Templin

  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
    edited May 2023
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    just following along …..
    where do see the fields/boxes for QDI vs Ord Divs -
    which of course would be totally depending upon buy/sell dates/lots

    QWin - R54.16 - Win10

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