Does anyone else have a completely bogus tax amount being calculated for 2024 federal income tax?

Forum|Forum|1 year ago
February 5, 2025
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The amount TurboTax is calculating for 1040 line 16 is almost twice as much as it should be. I have gone through the IRS instructions for 1040, 2024 Tax Computation Worksheet—Line 16 and TurboTax reports a number that is off by almost $10,000. This needs to get sorted out!

Best answer by jeremy-provost

I got it figured out (in case this is helpful to anyone else in the same situation). I have a form 2555, foreign earned income exclusion, which requires a different type of tax calculation. I thought the FEIE lowered your overall taxable amount, but it's more like cutting out the first chunk of income, leaving your remaining income to be taxed at the higher rate.

DoninGA

Employee

So, what is the amount posted on Line 15 and the amount posted on Line 16?

Did you have any qualified dividends or capital gains reported on your tax return? Did you have any other types of taxes as listed on the IRS Form 1040 Line 16 instructions on page 33 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=33