@rjsThank you! This is very helpful.
What confuses me is the size of the increase 2800$ in my tax coming from adding around 12k of non-taxable income. If this pushes some of our income from the 35% to the 37% percent bracket, this would be consistent with an increase of 2% *12000$, e.g. a tax increase of around 240$. The change in my taxes computed by turbo tax is an order of magnitude larger.
What am I missing?
Thanks again for being so helpful!
