Taxable income for MFJ is below 96,950 yet turbotax desktop Deluxe shows 22% under "Tax bracket %" in Tax History form when in Forms Mode.
The kiddie tax will apply to my dependent child, and I am afraid this value could be read and eventually applied to his return, is this concern valid?
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I'm not sure why the marginal tax rate is incorrect on your tax history screen, but the rates used to calculate your tax would not be affected by that. When you complete your tax return you can verify that the correct tax is being listed by looking on the Tax Smart Worksheet.
I've verified that the calculations are correct, and that in fact, the tax on the next dollar is 12%, however, my concern was whether that number might be used as the kiddie tax to be applied to another return, it would be nice to have a way to raise the issue to INTUIT as well.
No, that history screen will not affect the kiddie tax calculations for this year. You will enter relevant information in the other return and the program will calculate using current tax rates. The child will pay your tax rate on unearned income over $2,700. Since you are not adding the income to your return, it will not raise your income or tax- as the parent.
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