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Tax on Taxable Income differs between TurboTax and FreeTaxUSA

1,605 577 April 10, 2023 at 09:18 PM
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I always use both Turbotax and FreeTaxUSA to compare the calculations between them before i Submit. I had never seen this issue in past.

For 2022, Both Turbotax and FreeTaxUSA says
Taxable Income : $77344

But FreeTaxUSA calculates Taxes as 8226$
While TurboTax Calculates Taxes as 8148$

I am not sure how does these calculated Tax differs between these providers for same Taxable Income?

Refer the attached screenshots
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RawR!
> bubble2 1,659 Posts
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Hiiimgravy
04-10-2023 at 09:55 PM.
04-10-2023 at 09:55 PM.
it's possible due to the type of income you've entered. something is getting taxed differently at a different rate due to a data input. another alternative is you're getting a credit or deduction for something extra on the turbotax side. it's impossible for us to decipher by just the summary numbers. you'll need to pull out more line items to compare. do a print or pdf save of each version and compare.
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Joined Jun 2005
Let Sleeping Dogs Lie
> bubble2 8,420 Posts
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komondor
04-11-2023 at 06:28 AM.
04-11-2023 at 06:28 AM.
yes print out the whole the whole return as pdf then use beyond compare free 30 day trial.
https://www.scootersoftware.com/download.php

to see where the difference is if you cannot see it easily?
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Joined Jan 2008
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Original Poster
sakdeals
04-11-2023 at 09:07 PM.
04-11-2023 at 09:07 PM.
Finally figured it out..
It was due to Dividend entry i missed entering under Qualified dividend value.
When seeing the dividend worksheet, the dividend amount was less than which i updated and now FreeTaxUSA shows same as TurboTax.

Looks like Dividends are treated special rate based on Filing Status and Taxable Income.
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Joined Dec 2007
RawR!
> bubble2 1,659 Posts
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Hiiimgravy
04-11-2023 at 09:09 PM.
04-11-2023 at 09:09 PM.
Quote from sakdeals :
Finally figured it out..
It was due to Dividend entry i missed entering under Qualified dividend value.
When seeing the dividend worksheet, the dividend amount was less than which i updated and now FreeTaxUSA shows same as TurboTax.

Looks like Dividends are treated special rate based on Filing Status and Taxable Income.
that was my first guess.
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