Interest income

[Kat513]

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?

[CherylW · Accepted solution]

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.

[Kat513]

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]

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

[CherylW]

I'm glad it's ok!