$3000 of interest was received, but the TurboT Fed ETR was 36.3% where Tax should be 33%. TT State was was 6.2% vs flat 4.63% for CO state. Is there a bug in Turbo Tax?

429

Level 6

Jun 3, 2019 4:28:27 PM

It's possible you are being subject to the Net Investment Income Tax of 3.8%.

The income and gains from investments you hold will be taxed an additional amount if your Modified Adjusted Gross Income meets or exceeds the amount for the filing status below.

Married filing jointly - $250,000
Married filing separately - $125,000
Single - $200,000
Head of household (with qualifying person) - $200,000
Qualifying widow(er) with dependent child - $250,000

Form 8960 (Net Investment Income Tax – Individuals, Estates, and Trusts) is used for the 3.8% surtax on investment income for the Affordable Care Act.

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$3000 of interest was received, but the TurboT Fed ETR was 36.3% where Tax should be 33%. TT State was was 6.2% vs flat 4.63% for CO state. Is there a bug in Turbo Tax?