RedditPP Mascot

RedditPP

r/tax • … • u/JamesHutchisonReal

five figures taxable income and $1k taxes on $2.8k coming in on k-1s

I filed an extension and have been having to manually do it because the software I used didn't support an amendment with my set up.

Across my k-1s (ETFs that are publicly traded partnerships... grumble) I added a little over 2.8k in income. I'm going through the Schedule D worksheet and I'm seeing my taxes increase by $1k. The taxable income comes in above the cut-off for married, so from what I can tell the issue is that this income is pushing an equivalent amount of long term gains out of the 0% cut-off, so I'm getting taxed on that AND on the income it pushed out, for a marginal rate that exceeds 30%. It looks like 550 bucks of it is phantom income too (interest earned, apparently). That's nuts.

— 0