We had the same problem as OP did, but these answers weren't posted back in early Feb when I first did our taxes. I came back to them this evening and did the steps indicated by @FangxiaL & @LenaH and it definitely helped when I was allowed to say this PFL income wasn't income that we intended to earn (this choice literally wasn't there back on Feb 8). However, we are still owing $5671 in taxes on ~$18,460.72 in PFL income -- that's an effective tax rate of 30.72%. Our usual tax rate is 14-15% and our marginal tax rate should only be 22% at most, so something still seems wrong. Why are we being taxed so highly on this PFL income? Is it as wrong as it seems? How do I fix it?
