TurboTax FAQ
TurboTax FAQ
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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:

Scholarships/Fellowship income from Form 1098-T

Miscellaneous Income from Form 8919 Uncollected Social Security and Medicare Tax on Wages

Items from 1099-R such as disability before the minimum age of retirement and return of excess contributions

Excess Form 2106 Reimbursements from your employer

Form 4137 Taxable Allocated Tips

Excess Moving Reimbursement from Form 3903

Wages earned as a household employee (if less than $1,800 without Form W-2)

Sick pay or disability not on Form W-2 or 1099-R

Eligible Foreign Earned Income not reported on W-2

Ordinary Income from employer stock transactions not reported on Form W-2

Other Income Earned not reported on Form W-2

Taxable employer-provided dependent care benefits from Form 2441

Taxable employer-provided adoption benefits less any excluded benefits from Form 8839