I don't get these taxes

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AyashiKaibutsu

Diamond Member
Jan 24, 2004
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So before I was medically retired this year I made 26900 dollars (taxable income was in the military). 3000 of it was withheld and I was due to get 1300 back. I also received two months of retirement pay before my VA pay kicked in. That was 2500 dollars. Of which 250 was withheld. Now when I add it to my tax return I actually go down to 1100 on my return... That means they want about 450 for that last 2.5k. How is it that last 2.5k is getting taxed like 20%? Kind of a real kick in the teeth to lose money on my return from disability pay done as retirement because my ratings weren't finalized yet...

Shouldn't I be part of the 47% anyway?
 

jhu

Lifer
Oct 10, 1999
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Perhaps that last part puts you in a different federal tax bracket? Or maybe not.

Tax schedule from Forbes for 2014:

Single
Single.png


Married filing jointly
mfj.png
 
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Gunslinger08

Lifer
Nov 18, 2001
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I'm not a tax professional, but I'd guess that your additional $2500 put you over the limit for some low income credit or deduction.
 
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