To better understand Tax law and proposed changes to tax law, it is critical for taxpayers to know how different income categories are taxed.
I know it is based upon my total adjusted income but the info must be in your program algorithms.
I suppose I could figure this out myself by adding $100 to each category of income separately (earned income, dividends, pensions, interest, LT Capital Gains, ST Capital Gains, S. Security, rental income, Deductions, etc) and see how each lump of $100 changes my taxes. But TT should do this for all of us.
It depends on what kind of income you have, if you have capital gains or qualified dividends the tax on line 44 is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all worksheets to see it.
For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.
Tax is now on 1040 line 11. The only kind of income that gets taxed differently is sales and capital gains and qualified dividends. All the other income is taxed as ordinary income.
VolvoGirl, thanks for trying but I am trying to get more than this. I want TT to provide the tax rate I pay for each additional $1 in each category of income, at my overall level of income. They provide the overall 'effective' tax rate' but that is not helpful. I looked at the Div & CG Tax Worksheet and that did indicate the 15% for DIV and CG but I can't find the federal Tax table in TT so don't know what happens for each additional $1 of income and what happens when that value >$100K.