The tax amounted owed on line 16 of the 1040 is higher in Turbo Tax than when I compute it myself from line 15 using the IRS directions. Why?

[mesquitebean]

We don't know the items and situations in your return or how you are calculating, but I can tell you how you can start your investigation.   Be aware that TurboTax does not necessarily rely solely on the IRS Tax Tables.    There are a number of possible calculations that can be required by the IRS, depending on the particular items in your return, that require the calculations to be done in different forms and worksheets other than just the IRS Tax Tables.    As an example, do you happen to have Foreign Earned Income, and used the FEI Exclusion?

You appear to be using Online TurboTax.  Here's how you can see "what method" TurboTax is using to calculate your taxes:

• With your return fully open, go to the left column menu and click on TAX TOOLS. Menu expands, then choose TOOLS.
• On the Tools Center screen choose "View Tax Summary."
• On the "Review Tax Summary" screen again go back to the left column menu and select "Preview My 1040."
• In the 1040 Worksheet scroll way down to just below Line 15, where you will see a large box called Tax Smart Worksheet.  
• That should show you the method(s) that TurboTax is using to calculate the tax and where the tax figure came from.

[mesquitebean]

Addendum:

Once you use the steps above and know the specific tax method(s) TurboTax is using, if you have additional questions, report back in this same thread, and hopefully, someone will be able to further assist you.   Just remember this is a public Internet forum, so don't post anything with any personal information.

[jonathanlange]

I don’t understand step 1. I’ve already filed. I don’t see an option to ‘open my return’. I did have foreign earned income, as well as interest income and withdrawals from inherited IRAs. However, these appear to be calculated on other worksheets and then the result is added to income and all shows up on line 15. My problem is that the tax amount in line 16 does not correspond to the taxable income amount in line 15 when I calculate it myself, either by hand using the tax brackets or by using the IRS tax tables. Are any of the above income items taxed at higher rates than ordinary income?

[jonathanlange]

Also, Turbo Tax does not allow me to select the country where I lived, Ivory Coast (Côte d’Ivoire). I selected Angola, the first one on the list, as a dummy for the housing exclusion. Would this make any difference?

[mesquitebean]

---

@jonathanlange wrote:
I don’t understand step 1. I’ve already filed. I don’t see an option to ‘open my return’. I did have foreign earned income, as well as interest income and withdrawals from inherited IRAs. However, these appear to be calculated on other worksheets and then the result is added to income and all shows up on line 15. My problem is that the tax amount in line 16 does not correspond to the taxable income amount in line 15 when I calculate it myself, either by hand using the tax brackets or by using the IRS tax tables. Are any of the above income items taxed at higher rates than ordinary income?

Also, Turbo Tax does not allow me to select the country where I lived, Ivory Coast (Côte d’Ivoire). I selected Angola, the first one on the list, as a dummy for the housing exclusion. Would this make any difference?

---

Sorry, I'm a fellow user, not a tax expert.  I can't help you with your country issue and the ramifications of selecting the wrong foreign country.  I'll see if I can enlist a tax expert that has an interest in foreign income issues to help you in this thread.  So keep watching this thread.  In the meantime, here's some additional info, and also info on opening your return to view the tax calculation method.

As I said in my earlier post, you can't just use the IRS tax tables for some items of income, such as foreign earned income.   The calculations can sometime require additional worksheets.  Did you use the foreign earned income exclusion?    I believe using the foreign earned income exclusion can result in a higher tax, since the excluded income is first applied to the income of the lower tax brackets, making any additional non-excluded income subject to a higher marginal rate; i.e., the exclusion uses up the benefit of the lower brackets first, but since I'm a fellow user and not a tax expert, I've requested a tax expert to this thread to further assist you with your questions.

I didn't know you had already filed.   To look at the tax calculation method that TurboTax used, if you've already filed, here's how to open your return back up to go through the steps I outlined in my posting above to see the Tax Smart Worksheet.  NOTE:   Once you open the return, do not make any changes in it, in case it later has to be amended for any reason.

• Log into your Online TurboTax, and at the Tax Home page, click on "Add a state".   That doesn't really add one, but it opens the return back up.   Then you can follow the steps I outlined previously to get to the Form 1040 Worksheet, where you can scroll down to look at the Tax Smart Worksheet.

@DaveF1006  Greetings!  Are you able to please review this thread and assist this user with foreign income who indicated the wrong country in the return when he filed, and also with his original main question about why his tax is higher with the TurboTax calculations than when he tries to hand-calculate.   Thanks for your help!

[jonathanlange]

Thanks for all your help. I followed the steps and it says the number is taken from the Foreign Earned Income worksheet, but it doesn’t show the worksheet. The worksheet also isn’t attached to the filing, so there’s no way to see how TurboTax has calculated it. I looked up the IRS worksheet but it doesn’t make a lot of sense. In any case, if the foreign earned income exclusion eats into the 12% tax bracket, then you are right and that explains it. I didn’t realize it did that. I hope the person you referred this too will respond and confirm.

[mesquitebean]

I'm glad you were able to confirm that the tax figure was coming from that worksheet.  I can tell you how you may be able to download a PDF that has all the forms and worksheets of your filed and accepted return in it, and where you can (hopefully) actually see the calculation.    Look for a worksheet called "Foreign Earned Income Tax Worksheet."

• First, you have to open up your return exactly like you did above using the "Add a state" link.
• After the return is open, click in the left menu column on TAX TOOLS, then in the submenu choose PRINT CENTER.
• Then choose "Print, save, or view this year's return."
  
• The next screen should offer some options:  "Just my tax returns", or "include government worksheets (optional)", or "include government and TurboTax worksheets (optional.)"
•  The latter has the most pages.

[mesquitebean]

@DaveF1006   Are you please able to assist this user with foreign income exclusion concerning the tax calculation and also his issue about entering wrong country for the exclusion (Angola instead of Ivory Coast.)   Thanks.

[DaveF1006]

You may receive a copy of your worksheet by performing these steps.  @mesquitebean  has already addressed this in their post.

1. Log into your Turbo Tax return.
2. Scroll to the bottom of your landing page and select Add a State. This will give you access to your return.
3. In the left-navigational pane in your return, to to tax tools>print center
4. Then you can select the Turbo Tax Worksheet options and download the return. Don't print it because there may be many pages to print. 
5. While you are in this section, do not make any changes here as this will alter your original tax return.

I would suggest changing your country from Angola to Ivory Coast just in case if you have an audit of your return. To change the country, you will need to amend your return. To amend:

To amend your return using Turbo Tax Online.
 

1. Log into Turbo Tax
2. Select Scroll down Your tax returns & documents in your landing page.
3. Select Amend (change) 2023 return. 

As an FYI, you can amend a return only after it has been filed and accepted by the IRS. Reach out if you have any issues accessing your worksheet or trying to determine the difference in the tax owed.

@jonathanlange 

[jonathanlange]

Thanks for your reply. I didn’t see you address the international tax question though. Is the tax indeed higher because the foreign earned income exclusion eats into the 10% tax bracket? I did see the worksheet now but am confused about what calculation is being made. Also, I tried to amend my return and got a message that that is unavailable until the 15th because TurboTax is making updates. In any case, I doubt it would work. The whole reason I selected the wrong country is that the TurboTax country list is not exhaustive. It does not include Ivory Coast (nor Tunisia, where I lived before that).

[DaveF1006]

This information isn't all that critical.  Since Angola is a country in Africa, you can choose Angola-All Others and this will not impact your return and will not raise a red flag with the IRS. You shouldn't need to amend because of this issue.

@jonathanlange