Question

Should Turbotax taxable income (line 16) match IRS calculation for taxable income? It does not on my return

Forum|Forum|5 years ago
February 13, 2021
1 reply
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TurboTax Deluxe Online

Yes, the taxable income in your return has to much the IRS calculation. Your taxable income is calculated based on the formula: your adjusted gross income (AGI) less any itemized deductions you're entitled to claim or your standard deduction. Your AGI is the result of taking certain "above-the-line" adjustments to income, such as contributions to a qualifying retirement or health saving plans and student loan interest.

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darabbassAuthor

If Turbotax determined line 16 is multiplied by the tax rate (0.24), then minus the subtraction amount ($11,841), the answer is about $1,000 greater than determined by Turbotax. How does Turbotax determine line 16? Are other deductions made to line 16 not stated on 1040 form? Turbotax did not fill in how the tax is determined.

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npierson777

You're trying to determine your total tax amount, which is on the line 16. Tax rate is various and could be different than 0,24 in your case. Not sure that you mean by subtraction amount. Federal Income tax withheld? In any event, withholdings don't affect amount of total tax, it could be greater, then you'll receive a tax refund, or lesser, then you'll have a balance due.