Tax Planner Tax Calculation Error
Correction:
I forgot about the separate calculation for tax on LT Capital Gains. Quicken Tax Planner does calculate the correct tax.
Comments
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This is due to long-term capital gains being taxed at a lower rate. In your case, the tax on $69,901 - $7,623 = $62,278 is calculated from the tax tables, which gives $8,754. For your case, the tax rate on capital gains is 15%, so the tax is $7,623 x 0.15 = $1,143, for a total tax of $9,897. The $1 difference from the Tax Planner result is due to rounding.
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Thanks, that one slipped my mind. The IRS just has to make it so complicated. Maybe I would have had more confidence in the Tax Planner if the Projected Scenario GUI wasn't so flaky.
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Yes, the Tax Planner is flaky for me too. I see spontaneous changes to the estimated tax just clicking thru its screens. For me, its estimate is also wrong upon first opening it. If I toggle a setting off then on again, it becomes correct. I have to do this every time I open it. I'm glad I found my workaround for its quirks because I find its estimate useful.
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