drsalfano
New Member

Why is the equivalent tax rate so different when I add a W-2 of less than $8000?

Why is the equivalent tax rate so different when I add a W-2 of less than $8000?  Income of $162547 yields tax of $32467 for rate of 19.9%.  Income of $170202 yields tax rate of $34610 for rate of 20.33%.  Additional income of $7655 is apparently taxed at $2143 for a rate of 28%.  Why so high for the additional $7655 income?  I have attached my TurboTax file; just toggle the Kohl's W-2 on and off to see the differences.