Confused with different total tax amounts when comparing tax software calculations

I'm not super familiar with taxes but I thought it should be pretty straightforward for me since I'm just a single W2 employee. For the 2023 tax year, my Box 1 wages were $121,254. My interest income on my 1099-INT was $2,986. I used TurboTax and my total tax was calculated at $17,968. Since $17,199 was already withheld, I had to pay an extra $769. After that experience, I started having an additional $130 taken out for federal taxes each paycheck to avoid owing next time. Fast forward to this year (2024 tax filing), my Box 1 wages were $125,164, with $20,396 withheld for federal taxes in Box 2. My interest income on my 1099-INT was $2,427. I decided to try H&R Block since they had a sale going on. Their software calculated my total tax as $20,869 and said I still owed $473. This seemed off, so I went to the IRS website to estimate my taxes. According to their calculator, my AGI is $97,247 and I qualify for free filing. My total income is $127,591 and my taxable income is $110,239. The IRS calculated my total tax as $18,382. Since I already had $20,396 withheld, it showed I should get a refund of $2,014. Now I'm completely confused because we're talking about almost a $2,500 difference between H&R Block and the IRS calculator! My gut feeling is that the IRS calculator is correct and H&R Block made an error, since I earned slightly more this year so my taxes should be a bit higher than last year. That's what I was expecting. Would anyone experienced mind looking at these numbers to confirm? I can share all the details from my W2 if needed. Thanks!

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18 comments

Miguel Alvarez

•8M

Looking at your numbers, I think you're right to question the H&R Block calculation. There appears to be a significant discrepancy that needs investigation. When you have a straightforward tax situation like yours (W2 income with some interest), the calculations shouldn't vary that dramatically between different platforms. The most likely culprit is that H&R Block might be missing a deduction or credit that the IRS calculator is applying automatically. Or conversely, H&R Block might be incorrectly applying some additional tax that doesn't apply to your situation. The fact that your AGI on the IRS calculator is $97,247 but your Box 1 wages are $125,164 suggests you're qualifying for some substantial above-the-line deductions. Are you contributing to a traditional 401(k), HSA, or have other pre-tax deductions? These would explain the difference between your gross income and AGI.

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Miguel Alvarez

•8M

Your 401(k) and HSA contributions would definitely explain the AGI reduction, which seems right based on your numbers. I'd recommend reviewing the H&R Block tax return in detail - specifically look at Form 1040 and compare line by line with the IRS calculator results. Pay special attention to the "Tax and Credits" section and check if H&R Block correctly calculated your tax bracket. Sometimes software can miscategorize income or miss applicable deductions. If you still see significant discrepancies after reviewing, it might be worth trying a third software option like FreeTaxUSA or even the IRS Free File program since you qualify. Getting a third calculation would help determine which is more accurate.

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Zainab Yusuf

•8M

After reading your situation, I wanted to share my experience with something similar. I had weird discrepancies between tax software last year and found that using https://taxr.ai really helped clear things up. I uploaded my W2 and tax documents, and it analyzed everything to find exactly where the calculation differences were coming from. In my case, it turned out one software wasn't properly accounting for my retirement contributions. The analysis highlighted specific lines on my return where the numbers weren't matching up with what they should have been. Having those exact line items pointed out made it super easy to fix.

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Zainab Yusuf

•8M

I got my results in about 10 minutes. It definitely explains things in plain English - that's actually what I liked most about it. It breaks down each difference and explains why one calculation might be right and another wrong. It works with pretty much all common tax forms including crypto and business stuff. I only had W2s and investment income, but my friend used it with his side business Schedule C and said it caught deductions his accountant missed. The best part is seeing exactly which lines on which forms are causing the discrepancies.

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Connor O'Reilly

•8M

Just wanted to follow up that I tried https://taxr.ai after seeing it mentioned here and it was actually super helpful. I uploaded my tax docs and the reports I'd gotten from both TurboTax and H&R Block, and it found the exact issue immediately. Turns out H&R Block was calculating my student loan interest deduction incorrectly based on how I entered my income. The site showed me exactly which form and which line had the problem, and explained how to fix it. Saved me from potentially overpaying by almost $800! Definitely recommend for anyone confused by different tax calculations.

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Keisha Taylor

•8M

Hey, I had a very similar situation last year where different tax software gave me wildly different numbers. After trying to call the IRS for weeks with no luck, I finally used https://claimyr.com and got through to an IRS agent in about 20 minutes. They have this system that holds your place in line and calls you back when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to look at my previous returns and confirm which calculation was correct. Turns out one of the tax programs was double-counting some income because I'd entered the same information in two different places. The agent walked me through exactly what my correct tax liability should be.

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Keisha Taylor

•8M

It's a third-party service, but they don't talk to the IRS for you - they just hold your place in line. The way it works is they have an automated system that calls the IRS repeatedly until they get through, then they connect you directly when an agent picks up. You're the one actually talking to the IRS, not them. The IRS actually confirms this is legitimate - they don't care how you get through their phone system, just that it's actually you on the call. When you finally talk to an agent, it's a direct conversation between you and the IRS, exactly as if you'd waited on hold yourself.

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Paolo Marino

•8M

Just wanted to update after my skeptical comment. I actually tried the Claimyr service from https://claimyr.com because I was desperate to resolve my tax situation before the filing deadline. I'm shocked to say it actually worked perfectly. I got a call back in about 45 minutes telling me an IRS agent was on the line. The agent reviewed my situation and confirmed the IRS calculator was correct - there was a mistake in how H&R Block was calculating my adjusted gross income that was throwing everything else off. Saved me from overpaying by almost $2,000 and honestly about 15 hours of frustration trying to reach someone. Sometimes being proven wrong is a good thing!

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Amina Bah

•8M

If you're in Texas with no state income tax, then that eliminates one possible source of discrepancy. That's actually helpful for narrowing down the issue. Even if you're taking the standard deduction, check if both systems are using the correct amount for your filing status. The standard deduction for single filers is $13,850 for 2023 tax year. If H&R Block somehow miscategorized your filing status, that could explain part of the difference. Another area to check is qualified retirement contributions. Sometimes tax software requires you to manually enter 401(k) contributions even if they're shown on your W2. If H&R Block missed those, it would calculate a higher taxable income than the IRS calculator.

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