As AnnetteB6 mentioned, the results in TurboTax, which are correct, come from the fact that for taxable income below $100,000 you are required to use the tax tables. At taxable income of $3,000 and ...
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As AnnetteB6 mentioned, the results in TurboTax, which are correct, come from the fact that for taxable income below $100,000 you are required to use the tax tables. At taxable income of $3,000 and above, the tax tables are implemented in steps of $50 and the tax is calculated on the midpoint of the step. This means that for $10,000 of taxable income, the tax is calculated as 10% of $10,025 = $1,003 (rounded). Similarly, the tax on $5,000 is calculated as 10% of $5,025 = $503. You can demonstrate this stepwise characteristic by seeing that the tax on $10,049 is still $1,003, not $1,005. The tax on $10,050, just $1 more, jumps to $1,008 because it is calculated as 10% of $10,075.