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In the northern hemisphere, terrestrial ecosystems transition from net sources of CO2 to the atmosphere in winter to net ecosystem carbon sinks during spring. The timing (or phase) of this transition, determined by the balance between ecosystem respiration (RECO) and primary production, is key to estimating the amplitude of the terrestrial carbon sink. We diagnose an apparent phase bias in the RECO and net ecosystem exchange (NEE) seasonal cycles estimated by the terrestrial carbon flux (TCF) model framework and investigate its link to soil respiration mechanisms. Satellite observations of vegetation canopy conditions, surface meteorology, and soil moisture from the NASA SMAP Level 4 Soil Moisture product are used to model a daily carbon budget for a global network of eddy covariance flux towers. Proposed modifications to TCF include: the inhibition of foliar respiration in the light (the Kok effect); a seasonally varying litterfall phenology; an O2 diffusion limitation on heterotrophic respiration (RH); and a vertically resolved soil decomposition model. We find that RECO phase bias can result from bias in RECO magnitude and that mechanisms which reduce northern spring RECO, like substrate and O2 diffusion limitations, can mitigate the phase bias. A vertically resolved soil decomposition model mitigates this bias by temporally segmenting and lagging RH. Applying these model enhancements at continuous soil respiration (COSORE) sites verifies their improvement of RECO and NEE skill compared to in situ observations (up to ΔRMSE = −0.76 g C m−2 d−1). Ultimately, these mechanisms can improve prior estimates of NEE for atmospheric inversion studies. Plain Language Summary: In the northern hemisphere, the plants and the soil respond to warming temperatures and increasing day lengths in spring and begin to store more carbon than they release to the atmosphere, on average. The timing of this change is very important for accurately modeling how much carbon is stored or released to the atmosphere. We found that a commonly used model of plants and soil has delayed predictions of the timing of this seasonal cycle of carbon. We studied different potential changes to the model, including changes to: how carbon inputs to the soil from plant roots, dead leaves, and woody debris are added over time; how soil microbes respond to high levels of soil moisture; whether the soil is represented by a single layer or by multiple layers at different depths; and how the release of carbon by plants varies with solar radiation. We found that multiple different changes resulted in similar corrections to the seasonal cycle of carbon so long as they reduced or delayed the amount of carbon released during the spring season. We discuss why that is and how it impacts the model's performance and its importance for other modeling studies. Key Points: A bias in the seasonal cycle of net ecosystem exchange at high northern latitudes is identified in a first‐order soil decomposition modelSoil respiration processes that reduce or delay respiration during spring mitigate this phase bias and improve modeling skillIn situ chamber measurements of soil respiration provide validation and verification of model enhancements [ABSTRACT FROM AUTHOR]