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Does foreign earned income impact the way how form 1040 12a is calculated?

I tried to follow 1040 instructions - "2019 Tax Computation Worksheet—Line 12a" to calculate my tax (12a) based on my Taxable Income (11b). However, the number I got is quite different from what's generated

by TurboTax. 

 

I am feeling nervous, anyone in TurboTax that I can talk to or is there anything that I may have missed?

Is 11b an one-to-one mapping to 12a? Or are there anything else we should take into consideration?

(I have foreign earning income, will that be a problem?)

 

Thanks!

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2 Replies
BillM223
Expert Alumni

Does foreign earned income impact the way how form 1040 12a is calculated?

Under line 12a, are any of the boxes with a form number checked (or filled in)? There are a number of different ways to calculate the tax other than using the Tax Tables.

 

Also, a common thing that catches taxpayers if that capital gains and qualified dividends are not taxes at the same rate as ordinary income. 11b often has ordinary income and capital gains/qualified dividends mixed together, so you can't use the Tax Tables on this amount.

 

If you can see all your forms, look through them for a worksheet that describes how the income tax is calculated.

 

Foreign income will affect your tax due, but not the tax calculation directly.

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Does foreign earned income impact the way how form 1040 12a is calculated?

Thanks!

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