Skip to main content
Level 1
June 4, 2019
Solved

Turbotax state refund

  • June 4, 2019
  • 1 reply
  • 14 views

In adding a 2017 $15 state tax refund to my IRS 2018 income, Turbotax indicates that I increase  my 2018 IRS taxes by $11 (since in a 22% tax bracket I had expected only a $3 increase).                                                                                         When I pretend that the state  refund to be added as income is $100 I increase my 2018 taxes by $22 (and for my 22% tax bracket 22% this is correct). Is something wrong with the Turbotax program? 

Best answer by Texas Roger

The tax tables are in $50 intervals. The difference in taxes from one interval to the next can be $11 for some income amounts. So if your income was near the top of one of those intervals before the $15 income increase and was then near the bottom of the next interval after the $15 increase, the tax increase would be $11. 

1 reply

Level 15
June 4, 2019

The tax tables are in $50 intervals. The difference in taxes from one interval to the next can be $11 for some income amounts. So if your income was near the top of one of those intervals before the $15 income increase and was then near the bottom of the next interval after the $15 increase, the tax increase would be $11.