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

Question

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.

Ps56k2 · Answer

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

KJTemplin · Answer

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

markus1957 · Answer

A couple of reasons-

* 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.
* 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.