I made a lot in 2020 because I sold some long holding tech stocks. So I am in the 37% tax bracket.
So when I entered a bank interest, I noticed that my marginal rate is 43.8%! How can that be?
If I fake the interest to be $1000, the FED tax increases by $438. If I fake it to be $100, my tax increase by $44.
Shouldn't my marginal be 37% + 3.8% obamacare surcharge = 40.8%?
Please help. I checked my AMT in TurboTax is $0 and my underpayment penalty is $0 (because I planed the stock sales via W4 withholding).
