"Federal Refund" calculation

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I am in the middle of a tax bracket (example: 24%).

When I enter Interest income, let's say $100. I would expect the "Federal Refund" counter box in the software to drop by $24. 24% of income addition via interest ($100).

That number is dropping by a much higher percentage than my tax bracket. Why?

Is there additional tax applied to interest income beyond the tax bracket for higher tax brackets?

thanks

MinhT1Answer

Alumni - Intuit

You may be liable for the 3.8% NIIT tax.

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MinhT1Answer

Alumni - Intuit

You may be liable for the 3.8% NIIT tax.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

"Federal Refund" calculation

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