Should T-Tax recalulate my tax bill when going to lower tax bracket? IRA contribution put us in lower tax bracket and we do get full deduction (we checked).
I compared the tax rate schedule for our taxable income($29498 owed) to what Turbo Tax calculated ($31864). So seems it used 28% tax rate, not 25%. BUT, thanks to your info ... although I can't find that worksheet in the forms, I did see that on line 44 on 1040, tax is correct at $29498. THEN, my self-employment tax got added to come up with the "total tax" ... that is why it looks like higher tax rate applied. Thank you so much for your great advice!