1099INT Increases tax burden too much

This certainly sounds like there is more at play here than simple income tax.  I don't see what software you're in, but I'll proceed as if you are online.

I'd like to first check out your actual tax return.

• If you haven't paid for it you will not be able to print things, but you can see them.
• You will have to write down the numbers that come up, and then compare them.
• I'd like you to initially post the numbers without the interest.
• I'll give you some key numbers to write down.
• Then enter the interest, and compare the numbers.

You can preview your tax return by going to:

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.
8. Schedules 1,2&3 are included if you scroll down past your 1040.
9. To return to the entry screens press Back on the sidebar.

Some key numbers on your 1040 tax return are:

Line 15 - Taxable Income

Line 24 - Total Tax.

Line 25 - Withholdings.

Line 33 - Payments including Credits.

Line 34 - Overpayments.

Line 37 - Tax owed.

If you compare these numbers, it may give a clue as to what is going on.

Please write back and try to pinpoint where the numbers had changed.

@Ron045 

For low incomes, (below 100,000 of taxable income) the tax tables are used.

And the tax tables work in $25 ranges for lower incomes (taxable income below $3001 )

....and in $50 increments for taxable income from $3001 up to 99,999.

IF you change your ordinary income, anywhere within that range...there is no tax increase...but if you are right at the borderline to the next range, a $1 increase can up your tax anywhere from $1 to $3 (below $3001 of taxable income

..or $5-to-$12 for taxable incomes being between $3,001 and 99,999.

______

It sounds to me like you are in that borderline situation....but the next ~$39-40 of added income (above the $10 already entered) should not change your tax any more.....but much more than that, and yoru tax will rise again.

your income is low enough so by law the tax tables are used.    say you're single with 20045 of taxable income - before the interest with nothing special your tax is 2198. now you add the interest income. that pushed your taxable to 20055 which puts you onto the next rung in the tables. the tax on this 2204, a $6 increase on $10 of income.  happens often. it's even possible for $1 more of taxable income to increase your tax $6.