1099-INT tax calculation error on turbotax

[weafrique]

I entered a 1099 INT with of $414.81, per my tax bracket I should be paying a tax of 35% which will be approximately $141 , however, turbo tax is adding $162 to amount owed, which is 39% instead. How do I fix this? I wonder what else it calculated wrongly.

[Mike9241]

there is likely an additional 3.8% net investment income tax. look for form 8960. schedule 2 line 12

[weafrique]

Net investment income tax? This is interest on my savings account. Will this tax still apply?

[gmoores]

yes it will.  If you are in the 35% bracket you will owe the Net Investment Income Tax.

[SweetieJean]

See this re NIIT:

Net Investment Income Tax | Internal Revenue Service (irs.gov)

Also note that any increase in income can make more of your Social Security benefits taxable.  It can also lower or eliminate some deductions/credits.