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Kat513
New Member

Interest income

When I add interest income from a savings account to Turbotax, it increases my federal taxes due. Why? I already paid federal taxes on this income per my 1099-INT, so why does adding in this income increase my federal taxes on Turbotax?
1 Best answer

Accepted Solutions
CherylW
Level 3

Interest income

As you add taxable income (in your case, interest income), your federal taxes will increase.  You are reporting more taxable income.

When you add your Federal Income Tax withheld on that interest (box 4 on the 1099-INT), that amount will be subtracted from your tax to come up with the tax on your total income.

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4 Replies
CherylW
Level 3

Interest income

As you add taxable income (in your case, interest income), your federal taxes will increase.  You are reporting more taxable income.

When you add your Federal Income Tax withheld on that interest (box 4 on the 1099-INT), that amount will be subtracted from your tax to come up with the tax on your total income.

View solution in original post

Kat513
New Member

Interest income

Thank you, that makes sense. However, Turbotax didn't have a box 4 to put in taxes withheld, so it's missing that section - unless I add that in later under a different section?
Kat513
New Member

Interest income

Never mind - I found the box to check: My form has info in more than just box 1 (this is uncommon).
CherylW
Level 3

Interest income

I'm glad it's ok!
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