As Terry points out, the TurboTax definition and listing of step by step 'total income' page effectively is wrong. Took me a long time to calculate where the 'missing' income was hidden from 'total' ... thought I had entered something incorrectly. Would be much clearer if TT SIMPLY indicated on that page that it's actually total income - less xx yy zz. Was going to offer my 'discovery' when I was searching 'the community' for answers to TurboTax anomalies (this one and several other issues).
I feel as if we are all beta testers for TT and supplement as free support/help, where TT can review community comments and correct system errors in the daily updates once verified. Indeed, I too am glad that at least the 1040 appears to total correctly (taxable total income, AGI, etc), but the 'step by step 'total income' figure before sending file, is confusing and effectively wrong if you are trying to determine what your 'real total income' was (a simple and important element for many people.)
Soon the IRS will allow direct filing for free to a wider income range of filers (albeit for simpler filings). Maybe then TT will make more effort on their products as value to help support / clarify more confusing elements in tax law and calculation figures to justify paying for their service. Expecting the IRS to actually help explaining IRS rules in their system will be tough 🙂 Better yet, maybe that will actually help prompt some simplification of tax laws.
