HI,
I am trying to understand how tax work, and how to understand the Fed tax's own shown up in the TurboTax while I input the data into it.
I am filing as MFJ, and after I input W2s, it shows that I own X amount of Fed income tax, and in the TurboTax 2022, it even shows how this number comes out. I believe this is a new feature starting in 2022 version.
Now I start inputting the 1st 1099-INT just received from one of my banks. After I input box-1 of Y amount, the tax amount owned increases $Z dollars. If I divide Z / Y, I will get around 0.47, so around 47%.
This part is higher than I thought. So far, after all of our W2s so far, our marginal rate is between 32% and 35%. And 1099-INT income should just be taxed as ordinary income, right? So I expect the added tax amount should be around $Y * 0.32, and why suddenly is the due amount increasing 47% of the 1st 1099-INT amount?
I understand not all the tax info is input yet, and I am just in the income stage. But still, I want to know if there is any reason for that.
Maybe someone can share any hints?
Thanks
