This article is for information only and is not tax advice.
This article answers the question "Wages in the return or estimation do not match my gross income." It explains why the amounts differ and how to calculate your total gross income.
Why don't the wages in my return or estimation match my gross income?
When you use a tax treaty, Sprintax deducts the amount that the treaty specifies from your total gross income first. This deduction causes the difference. The wages in your return or estimation are lower than your gross income by the treaty amount.
How do I calculate my total gross income?
To calculate your total gross income, follow these steps:
Find the income that your return or estimation reports after the tax treaty deduction.
Find the tax treaty amount.
Add the two amounts. The result is your total gross income.
Total gross income = income reported after the tax treaty deduction + tax treaty amount
What does an example look like?
In this example, your income documents show a total gross income of $20,000, and your tax treaty amount is $9,000. All amounts in this example are fictional. The following table shows the amounts.
| Item | Amount |
|---|---|
| Total gross income on your income documents | $20,000 |
| Tax treaty amount | $9,000 |
| Income that the return or estimation reports after the tax treaty deduction | $11,000 |
| Check: $11,000 + $9,000 | $20,000 |
What if the amounts don't match after I add the tax treaty amount?
Check that you entered every income document, such as each Form W-2 and Form 1042-S. Then check that each amount in Sprintax matches the amount on the document. Compare your total gross income with Box 1 of Form W-2 or Box 2 of Form 1042-S.