Solved: This year our income is up from $98,000 to $101,000. Our tax due for Federal and State is up considerably! Did we move to another tax bracket? Not enough withholding?
This year our income is up from $98,000 to $101,000. Our tax due for Federal and State is up considerably! Did we move to another tax bracket? Not enough withholding?
Also under what conditions is mileage deductible? I commute 130 miles a day to work.
This year our income is up from $98,000 to $101,000. Our tax due for Federal and State is up considerably! Did we move to another tax bracket? Not enough withholding?
No. You didn't move up a bracket, but more of your income was taxed at the 25% rate. The entire $3,000 would have been taxed at 25%. So, that would result in $750 extra tax. Also, the bump in income may have affected other deductions and credits. I would suggest increasing your withholding. Please view the Turbo Tax FAQ below for more information about the 2016 tax brackets.
This year our income is up from $98,000 to $101,000. Our tax due for Federal and State is up considerably! Did we move to another tax bracket? Not enough withholding?
No. You didn't move up a bracket, but more of your income was taxed at the 25% rate. The entire $3,000 would have been taxed at 25%. So, that would result in $750 extra tax. Also, the bump in income may have affected other deductions and credits. I would suggest increasing your withholding. Please view the Turbo Tax FAQ below for more information about the 2016 tax brackets.
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