- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
When I add 11.23 bank interest from my 1099-int my refund goes from$1031 to $1019. Wy is my refund being reduced by twelve dollors when adding $11.23
Topics:
posted
June 3, 2019
12:17 PM
last updated
June 03, 2019
12:17 PM
1 Reply
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
When I add 11.23 bank interest from my 1099-int my refund goes from$1031 to $1019. Wy is my refund being reduced by twelve dollors when adding $11.23
The tax tables work in $50 ranges (when the total of all taxable income is over $3000)
Any change within that $50 range doesn't change the taxes assessed....while a jump to the next range will increase yoru tax
so
a) if your current taxable income is at the bottom of a $50 range, an added (say) $48 may do nothing...while
b) if you are near the next $50 break point, then an added $1 or $2 may push you into the next tax block...jumping your tax $12 (depends exactly where you are in the tables).
Essentially you actually saw $12 tax for a ~$50 change (~24% since some of the $50 was already waiting in there)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
June 3, 2019
12:17 PM
Still have questions?
Make a post