AGI =85,071, which includes qualified dividends of 41,670
Itemized deductions = 48,262, 1 exemption at 4,050 = taxable income of 32,756
tax on line 44 = zero, which makes no sense to me
Does it have anything to do with the qualified dividends?
Shouldn't there be some tax?
Yes it has to do with the qualified dividends. Not sure which TurboTax product that you are using, but I put your figures in a desktop application to see how line 44 was calculated. When I look at the worksheet on how the Qualified Dividends and Capital Gains Tax worksheet is calculated, I get the same result as you-zero taxes. Qualified dividend taxes are taxed at rates of 0%-23.8%. If you are in the 10-15% ordinary income tax rate, then the qualified dividend rate would be 0%.
Note: I am not privy to the rest of your return details and only entered that which you listed above. I also assumed that you were single.