How Does TurboTax Calculate Line 7 Form 1040/1040A and Line 1 1040EZ Wages?
In certain situations, you may notice that Line 7 of your Form 1040 (Line 1 of Form 1040EZ) has an amount that does not agree with what you entered on your W-2. This line normally shows the total of your W-2 wages.
However, the amount you see on these lines can be changed by other less common income items from other areas you entered information in TurboTax. Even your W-2 may include special benefits that are taxable on the "Wages, Salaries, Tips, Etc." line, but are not included in your gross income shown in box 1 of a W-2.
And there may be cases when no Form W-2 is received, but income must be included on line 7 of your 1040 or 1040A or line 1 of Form 1040EZ. Foreign earned income or certain disability income are examples where you may not see income on a Form W-2. As always, all TurboTax calculations follow IRS tax laws. (See IRS publication 17 Chapter 5 for guidelines.)
Each of the topics below is a common income item that could increase the Wages, Salaries, Tips, Etc. line and be reported on your return. Note there are other unusual or uncommon items that this list does not include.
Look for an item that might affect your return and click on the link to learn more and find where to review it in TurboTax. Then determine if your tax return entries are correct and complete: