Turbo Tax deducted $7 from my refund after I inputted $11 in interest earned- how does that make sense?

[SteamTrain · Accepted solution]

the tax tables only change the taxes in $50 income steps ($25 income steps if your taxable income is below $3000).

As such, adding $11 of income does nothing to the taxes due while you are in the middle of that $50 range, but as soon as you cross into the next lot....it jumps up......so it is really the tax on the whole $50 range, including $ you were not being taxed on yet.

See:

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf