Total Income is Higher than 2018

[radioshoppe]

My Total Income shown in Turbotax for 2019 is about 30 percent higher than Turbotax shows for 2018.  Entries for both years are near mirror images.  There are slight increases for 2019 in amounts entered, due to COLA increases but not near  that amount.  Has IRS changed how Total Income is calculated or has Turbotax changed calculations or what can explain this?

[ReginaM]

If your income is higher in 2019 than in 2018, you may want to review your return to make sure everything was entered correctly.  While in TurboTax follow these steps:

1. Select Tax Tools on the left hand side of your screen,
2. Select Tools,
3. Select View Tax Summary,
4. Select Preview my 1040 on the left hand side of your screen.

Another thing you might be seeing is back in 2018, the IRS reduced the amount withheld from employee paychecks so people had more take home money. This was done because the IRS did away with the personal exemption and increased the standard deduction. The net affect of this has lowered the amount of refunds realized by the taxpayer.

[radioshoppe]

The main problem is that Turbotax has a taxable and nontaxable listing for social security and adds both with other income to arrive at the Total Income number.  That is counting part of social security twice and then using that number as Total Income.  That makes my Total Income in Turbotax over $10,000 more than it actually is.  I would sure like to hear that explained!

[radioshoppe]

I think I figured out part of it.  Social Security Taxable amount increased and IRA amounts increased.

[VolvoGirl]

Yes if you had an increase in the IRA and any other income it will make more of your SS taxable.

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

Social Security is on 1040 line 5a and the taxable amount on 5b.

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.  Or if you are using the Desktop program you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.