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posted Jun 4, 2019 1:37:59 PM

Why did my refund drop $12 on $15.41 of interest in TurboTax Premier 2016 from my bank's 1099-INT form? 78% interest income tax? Did this push me into a higher tax level?

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1 Best answer
Level 7
Jun 4, 2019 1:38:01 PM

The tax table is not actually a straight percentage.  It moves in $50 increments, so the $12 tax jump was likely a result of being moved into the next $50 increment.  It will probably make the most sense if you take a look at the link below and the tax table for your income level.  You will see $12 increases in tax due for every $50 of income at certain income levels/filing statuses.

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

1 Replies
Level 7
Jun 4, 2019 1:38:01 PM

The tax table is not actually a straight percentage.  It moves in $50 increments, so the $12 tax jump was likely a result of being moved into the next $50 increment.  It will probably make the most sense if you take a look at the link below and the tax table for your income level.  You will see $12 increases in tax due for every $50 of income at certain income levels/filing statuses.

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf