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2019 was not a good year and my taxable income(1040 line 11b) is $3600.

I had dividend and LTCG income so Schedule D sends me to this worksheet: Qualified Dividends and Capital Gains (page 33, 1040 instructions).

I had expected to pay no federal tax, but am getting hung up on question #24 on this Worksheet.

24. Figure the tax on the amount on line 7. 
If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. 
If the amount on line 7 is $100,000 or more, use the Tax Computation  Worksheet

In my case, line 7 is $0. But if I follow these directions to Tax Table and use $3600 (line 11b), I do have a tax to pay, which flows to end of this form.

Have I interpreted line #24 correctly?

Thanks.

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You missed an important part of that quote of Line 24: "Figure the tax on the amount on line 7" (emphasis mine). The tax on $0 is $0.

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  • To me, Tax Table is explicit: "If line 11b (taxable income) is --" [Suspect you are correct, though!]
    – jim rothstein
    Apr 13, 2020 at 12:15

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