I have encountered an interesting problem with TurboTax. With foreign income exclusion counted, two returns with the same taxable income (one has foreign income exclusion and one doesn't) have dramatically different tax:
case 1 without foreign income, line 11:128,505,line 15: 103,401, line 16: 12,720
case 2 with 100,000 foreign income and excluded: line 11:128,505, line 15: 103,401, line 16: 21,334.
Are tax supposed to be determined by the taxable income? why two such dramatically different results?
