Yes, it is impossible for an $86,000 income to have a 33% federal tax rate. For 2025, a single person earning $86,000 is in the 22% bracket. if you see a 33%, TurboTax might be showing you a total that includes Self-Employment Tax (15.3%) if you have 1099 income. If you add 15.3% to a 12% or 22% income tax bracket, you hit 33% very quickly.
If your city keeps switching back to Yonkers, you’re likely caught in a New York State residency check. Yonkers has its own income tax surcharge, so the software pays extra attention to it.
- Check the W-2: Go back to your Federal W-2 entry. Look at Box 20 (Locality Name). If it says "Yonkers" or "YON," the software will force the city to Yonkers on your personal info. Change it to your actual city or leave it blank if no local tax was withheld.
- The "State Move" Trigger: Since you moved states, if you were ever a NY resident during the year, TurboTax triggers the "Change of City Resident Status" form (IT-360.1). If you don't answer the "Are you a resident of Yonkers?" question correctly, it defaults to Yonkers to be "safe."
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