Error in adding bank interest income?

[tom77583]

After entering all my data except bank interest, I owed $416 for 2020.  When I add in $6 interest from my bank my tax owed jumps to $423, more increase than the amount entered.  If I change the amount to $1 or $2 the owed amount drops to the original $416 and then increased to $417 if I enter $3 interest.  The amount stays at $417 if I enter either $4 or $5 but then jumps to $423 for the next dollar increment change to $6.  Seems to be a flaw in the calculation somewhere.  How can I trust the total amount owed?

[ErnieS0 · Accepted solution]

Having your tax liability jump by $7 after adding $6 may not look right but it probably is.

TurboTax is backed by a 100% Accurate Calculation Guarantee. In plain English, if you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

There are a number of reasons why your tax may have gone up.

• Your income may have put up into another tax line. The IRS tax tables are divided in $50 rows. For example, if you were single and cross the line and make $50,001 instead of $50,000 your tax would go up $11 for just adding a dollar.
• Extra income may also reduce some tax credits, such as the Earned Income Tax Credit.
• Extra income may also may more Social Security benefits taxable.

You can schedule an Expert Review with a tax return to review your taxes before you file. To schedule a Live Review see What is a talk live session and how can I schedule one?