Thank you so much. Perhaps this is starting to make sense. So the tax rate is the marginal rate not the effective rate shown on my tax return?
When it asks for my line 15 taxable income, let's say I put in $80,005. That would cause TurboTax to calculate a 22% tax rate against my daughter's income less the first $2,100 you mentioned. Correct?
That is actually a good chunk of change and probably what the software calculated. I will check tomorrow.
We are not complaining and we're glad she got the pua insurance. It just seemed like it was an awful huge chunk and I wanted to be sure it wasn't supposed to be taxed my quote unquote effective rate but rather this marginal rate.
