iTunes telling me I have more storage available than my iPhone

I have moved all my photos to my iCloud and turned off Photo Stream and when I connect my iPhone to my iTunes the storage bar shows 1.88GB of storage available - which sounds correct for the amount of stuff I removed. However when I check my storage under settings on my phone it shows only 760MB of storage available and I can't figure out why iTunes is reading it as different when connected. Any help or ideas to try?