@ImAndy wrote:
I'm running some what if scenarios and find that at $10,000 for box 1a and 2a and 2b checked with box 7 marked 7 and IRA/SEP checked, I would owe zero tax. HOWEVER, if I bump that to $12,000, the tax owed skyrockets to $9,977. How is that possible if tax rate is 12% for under $75k agi??
You do not provide enough information to answer. It depends on how much the tax would be before you "bumped" it to $12K, and what you other income an credits might be. EIC, and other credits can decrease as your taxable income increases. The tax owed is not based on the incime alone but the elimination of credits will also increase the tax owed.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
