IRS corrects error in Schedule D tax calculation worksheet

On May 15, the IRS notified tax software companies that it had discovered an error in the instructions for the Tax Worksheet for the 2018 Schedule D, Capital Gains and Losses. The IRS explained that the tax calculation did not reflect the new regular tax rates and brackets for certain Schedule D filers who had 28% rate gain (which is taxed at a maximum rate of 28%) reported on line 18 of Schedule D or unrecaptured Sec. 1250 gain (which is taxed at a maximum rate of 25%) reported on line 19 of Schedule D, as a result of changes in the law known as the Tax Cuts and Jobs Act, P.L. 115-97.

By Sally P. Schreiber, J.D.

The IRS posted the corrected worksheet at the end of the instructions, which were updated Thursday….

Article continues…click HERE to read the rest
on Journal of Accountancy website.

Leave a Reply