I'm single and in the second highest income tax bracket for 2024. I do not own any properties and do not have any stocks. I only have one job that generated one W-2 for the year. No other form of income except for bank interests. My tax situation is very simple and I also do not have any deductions or credits. I earned over $23K in bank interests from three banks in 2024. After I input the three 1099-INT forms, my taxes owe went up to over $20K. Is this normal?
" in the second highest income tax bracket "
Multiply $23k by that bracket to see the most income tax you would pay on that interest.
delete all 1099-INT to see your tax without bank interest.
Yes, interest from high-yield saving accounts is taxable.
It seems unusual that tax would increase $20k on $23k additional income if you have no deductions. There are some deductions that are phased out at a certain income, as well as credits. For example, the Child Tax Credit is not available for a joint return if your income is over $400,000 or a single with income over $200,000.
I'd suggest printing a pdf of the return and double checking the figures you entered are correct.