The tax calculated by Turbotax in box 44 of the 1040 is not correct. If I take the amount in line 43, and use Married File Jointly, I don't get the number reported in box 44. I have a Foreign Earned Income Exclusion amount. If I remove that (and remove it from the Income box 7 too so that box 43 is the same number) I get the correct number in box 44. However I thought this exclusion was only used to calculate the AGI and thereafter the taxable income, but once the latter was established, the tax calculation should be the same.
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No, the tax calculation is not the same.
The calculation takes the tax on the total income (including the foreign income) then subtracts the tax on only the foreign income. That effectively means the foreign income 'uses up' your lower tax brackets, and the rest of your income is now in higher tax brackets.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=43
No, the tax calculation is not the same.
The calculation takes the tax on the total income (including the foreign income) then subtracts the tax on only the foreign income. That effectively means the foreign income 'uses up' your lower tax brackets, and the rest of your income is now in higher tax brackets.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=43
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