I submitted 2024 tax returns for both state and federal. A few weeks later, I received an additional 1099 for about $800 (interest earned). I figure I have to submit an amended return to include this additional 1099. I started the amendment and it looks like I will owe over $600 in tax with seems crazy for an additional $800 in interest income. My overall household income is around $105000. What am I missing?
It depends. Look at the entire amended return including supporting schedules. You may have either entered something incorrectly, and/or the additional income might have caused one or more credits or deductions or additional taxes to be recalculated.
Taxes are often calculated using a different method than the tax tables. For example, if you have capital gains, the tax on those is calculated at the capital gain rate for your income level. If you are self-employed, you may have self-employment taxes in addition to income taxes.
You can preview your return before filing to find out how your taxes were calculated. See here for details.
It depends. Look at the entire amended return including supporting schedules. You may have either entered something incorrectly, and/or the additional income might have caused one or more credits or deductions or additional taxes to be recalculated.
Taxes are often calculated using a different method than the tax tables. For example, if you have capital gains, the tax on those is calculated at the capital gain rate for your income level. If you are self-employed, you may have self-employment taxes in addition to income taxes.
You can preview your return before filing to find out how your taxes were calculated. See here for details.