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Deductions & credits
You'd need you look at the actual form 1040 lines....before & after adding the $1000 to see what' happening.
For instance, some credits might be reduced...
or, more commonly
For folks getting SS income too, during the year, the added income can make more of your SS subject to taxation...so it ends up being some tax on the $1000, and then some more of your SS income getting taxed (line 6b of the 2023 Form 1040 shows the amount that is being taxed....though, line 6b maxes out at 85% of line 6a)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
‎June 28, 2024
7:49 AM