I was receiving a 4400 refund via federal taxes but then had to amend my return because of late 1099 C forms, assing approximately 4000 to my taxable income and now turbotax is saying I owe 500 in federal. Is the 1099 C income taxed that highly?
Possibly, The IRS has a progressive tax. The more income you make, the higher the tax goes.
The 24% bracket is:
The entire $4,000 would go into this bracket.
oh we don't make that kind of money as joint filers. We didn't even clear 100k filing jointly with those 1099 additions. I'm VERY surprised the tax would jump THAT much.
If you also received Social Security, more of it may have become taxable. And any increase in income can also lower or eliminate some deductions/credits.
If you added $4,400 to your taxable income and your tax was $500, your effective tax rate is 11.4% ($500/$4,400). The lowest tax rate is 10% on taxable income.
Click here for the 2021 tax brackets and to find how your taxable income is taxed and at what rate.