Error in Qualified Dividends and Capital Gain D Tax Worksheet in Pub. 505

Worksheet 2-5 titled “2019 Estimated Tax Worksheet—Line 4 Qualified Dividends and Capital Gain Tax Worksheet” in Publication 505, Tax Withholding and Estimated Tax, contained an error. The tax calculation did not work correctly with the new TCJA regular tax rates and brackets for certain taxpayers who had 28% rate gain (taxed at a maximum rate of 28%) or unrecaptured section 1250 gain (taxed at a maximum rate of 25%). The corrected worksheet is in the updated Publication 505 at the link above. If you downloaded Publication 505 before May 16, 2019, you should download it again. You should use the updated publication to figure your estimated tax for 2019.

We corrected Worksheet 2-5 in the updated Publication 505 by renumbering line 13 as line 13a, adding new lines 13b and 13c, and updating the text on line 14 to reflect those changes. We also similarly changed Worksheet 2-8.