Interest income

Forum|Forum|7 years ago
June 1, 2019
4 replies
15 views

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?

TurboTax Premier Online

Best answer by CherylW

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.

CherylWAnswer

Level 11

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.

Kat513Author

Level 2

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?