I generated tax returns both with foreign income and without foreign income and indeed this is a huge calculation error in TurboTax (should be covered by their 100% correct calculations guarantee).
What happens is that my foreign income gets added to by wages under 1, then get negatively added under 8 (Other income), resulting in the same 15 (Taxable income). So far so good. But then, erroneously, 16 (Tax) shows an increase as if the full sum of my foreign income was taxable. If my taxable income is the same for both generated tax reports, how come the calculated tax is different?
This is not a small calculation error, but increases my calculated tax burden by $20.000.
