After entering all details in Turbotax Premier, taxable income shows as about 159000 compared to 150000 in 2020. But the federal tax in 2021 shows as about 26000, compared to 22400 in 2020. That means the taxable income increased by about 9000, but tax increased by 3600, which is about 40%. Is this correct?
Maybe your tax in 2020 was lower than the tax table. Maybe you had more capital gains in 2020 that were taxed at a lower rate? Many other things could be different too. And there are like 7 different ways to figure the tax.
Thanks for the reply. However, the capital gains were negative in both the years, comparable amounts in both the years.
Is 159,000 your AGI or total income?
Tax Bracket Calculator - 2021-2022 Tax Brackets | TurboTax® Official (intuit.com)