Look at your tax return, Form 1040. The federal taxes owed is entered on Line 22. The taxes due is calculated by subtracting Line 15 from Line 18.
Where is the discrepancy on the Form 1040, which Line or Lines?
Please explain why you think your tax due is incorrect. Remember that we cannot see your screen or your tax return.
Did you make a payment with an extension that isn't showing up?
Line 11 - Tax is incorrect.
My Line 10 falls under 22% and i have used the following tax rates to calculate my tax due offline.
$ 8907+((Line 10 less 77400)*0.22)
Married filing jointly
i did make a payment with my extension and it is shown on line 17.
My issue is with Line 11a. Tax
@DMari wrote:
i did make a payment with my extension and it is shown on line 17.
My issue is with Line 11a. Tax
What is your taxable income on Line 10? Are any boxes checked on Line 11a?
@DMari wrote:
i did make a payment with my extension and it is shown on line 17.
My issue is with Line 11a. Tax
Is the box on Line 11b checked?
None of the boxes on 11 a and 11b are checked.
The amount on line 10 is 100,000 and line 11 is 16207
What is your filing status and what is the tax year? The taxes number does not equate to anything in the tax tables for 2018 based upon taxable income of $100,000.
Did you report any qualified dividends or capital gains on the tax return?
well I noticed that in a detailed view, the foreign earned income tax worksheet is checked.
I am filing F 2555 and thought the entire foreign income earned is eligible for exclusion. However, it appears that the total tax is calculated based on taxable income including foreign earned income and then a deduction for this foreign earned is provided later.
In other words, 1040 line 10 shows 100,000 but tax is calulated on 120000 and then the tax amount is reduced by tax on 20000!
See the instructions for Form 1040 Line 11a starting on page 38 and the Foreign Earned Income Tax Worksheet on page 39 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=38
@DMari wrote:
In other words, 1040 line 10 shows 100,000 but tax is calulated on 120000 and then the tax amount is reduced by tax on 20000!
Yes, that is exactly how the tax is calculated. When you take the foreign earned income exclusion, your tax is not just calculated on the taxable income amount on Form 1040 line 10. The amount of excluded foreign income affects the tax because your other income, that is not excluded, is taxed at the same rates that would have applied if you did not get the exclusion. The non-excluded income is "stacked" on top of the excluded income for the purpose of calculating the tax. Therefore, the excluded foreign income pushes some of the other income into a higher tax bracket, so it is taxed at a higher percentage.
To perform this stacking of income the tax calculation has to be done on the Foreign Earned Income Tax Worksheet. You can look at this worksheet in forms mode in TurboTax, or on page 39 of the IRS instructions for Form 1040. Basically the calculation is three steps, as you have observed.
Taxable income is $22,619. Federal Taxes owed is $8781 which seems very high especially comparing to tax tables.
Please confirm federal taxes due for single with taxable income of $22,619
The tax is too high it would seem. I suggest you look at the form 1040 and schedules 1 to 3 to make sure nothing was entered incorrectly as follows:
1. Find the "Tax Tools" option on your left menu bar and click on it
2. Click on "Tools"
3. Click on "View Tax Summary"
4. On your left menu bar find the "Preview my 1040" option and click on it
What kind of income do you have? It also depends on what kind. Do you have self employment income or get any 1099Misc? What actual line do you see the $8,781 tax on? Is it line 12a? Oh, did you get any 1099R for early distributions? You could owe extra penalty.
how is the federal tax calculated - for 2018 it was 10% on the first $19,050 - 12% on next $58,350 etc
line 11a is the total of standard or itemized deductions + the deduction for qualified business income. it is not a tax
taxable income is on line 11b
first tax line is 12a
12b includes amount on 12a + the taxes on schedule 2 and 3
13a is child care and dependent credits
13b is 13a + line 7 from schedule 3
12b less 13b = line 14
14 + 15 = line 16 total tax
you may computation may be wrong if you had qualified dividend or net long-term capital gains
so do you still have an issue?
if so post back