On Tuesday, October 18, 2022 at 3:11:42 PM UTC-5, Adam H. Kerman wrote:
I prepare the tax return for a retired relative. She itemizes. I'd
forgotten to deduct Part B and Part D premiums when itemizing her
medical expenses.
I create formulas in spreadsheets for the Social Security Benefits worksheet Line 6b and the Qualified Dividends and Capital Gain Tax Worksheet Line 16.
She'd already submitted her taxes, but I redid them with the higher
itemized deductions.
According to the Qualified Dividends worksheet, she owed a few hundred
more in federal taxes with the higher itemized deduction!
I've really never studied how Qualified Dividends are supposed to work.
There must be a capital gain phase out I'm not aware of.
I don't think I made an error in the spreadsheet calculations. I checked
it multiple times for the same result.
I know the Social Security worksheet and Qualified Divs et cetera (for Line 16) worksheet
pretty well. I too know of no capital gain phaseout .
I do not see how adding Parts B and D Medicare premiums such that the
itemized deductions rose would result in an increase in taxes.
This has to be rationally explain-able, line by line if need be, of course. If not, then
I expect the problem is "operator error": Something was not input correctly, be it a
spreadsheet formula or a dollar figure.
Wish I were there to look at the whole picture.
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