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Get your taxes done using TurboTax
What I have tried is for two persons with foreign income of US$ 17,000 and US$ 77,000 respectively. Since the foreign income is qualified for the exclusion, so it is filled in 7a of 1040 and deducted from the total income. Because everything else is the same, two persons will have the same total taxable income, e.g., US$157,542 (11b of 1040). However, the tax in 12a by using turbotax is quite different: $27,883(foreign income of US$ 77,000) vs $21,837(foreign income of US$ 17,000). Why did turboTax calculation has two different tax result? Are they suppose to be the same with the same total taxable income and everything else except foreign income? Is this an error with the turboTax calculation?
June 29, 2020
12:45 AM