Turbotax What if worksheet

[Davew2]

The TurboTax What-if Worksheet for 2020 is using a tax rate of 27% when it should be 22% thus the estimated taxes are overstated by 5% ….Please fix this error.

[DMarkM1]

Would you mind providing a bit more information so that I may try to duplicate?  What lines are you using to get a 27% percent tax rate?  What income and filing status are you using?    

[Davew2]

Filing status is Married filing joint return ..Income is over $85,000 but under $150,000 

When you add any additional income, such as interest income the additional tax added is 27% of the

additional income added …(eg add $1,000 interest income and additional tax is $270 but should be $220) 

[JamesG1]

Those specifics entered into the Tax Bracket Calculator here return the correct answer.

[Davew2]

Yes that is correct but TurboTax needs to fix the tax rates used in the What-if Worksheet..as the 27% is incorrect

[Davew2]

I provided the income , filing status etc. you requested ..Hope you can duplicate the 27% tax rate ...I just checked the What-if worksheet in my 2019 Turbotax and it still uses that 27% for additional interest income ...Will this be fixed soon in a software update..?

[Davew2]

I just tried a test of the 2019 Turbo-tax What-if Worksheet. First I created net taxable income line 43 at $80,000.
Then I reduced that net taxable income by $1,000 to $79,000 and tax due went down $120 or 12%
Then I increased that net taxable income by $1,000 to $81,000 and tax due went up $270 or 27%

Thus it seems clear that the What-if Worksheet has the correct tax rate of 12% for incomes below
$80,000 and the incorrect tax rate of 27% for income above $80,000...That rate should be 22%..
By the way the actual increase in rates to 22% should happen at $80,251 ..which is another error
as it happens now at $80,000...