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It makes sense that it’s limited by tax situation but why the limit on amount of income? Surely the math for $1499 interest is no different than $1501 interest.
by zeroonetwothree 3y ago
It makes sense that it’s limited by tax situation but why the limit on amount of income? Surely the math for $1499 interest is no different than $1501 interest.
- beej71 3y agoI was thinking this too. Maybe it's just a way to safely limit damage if something went wrong with the system in these early trials...?
- bbarn 3y agoBecause most audits are done on income over that level. Also, this is definitely the "MVP" version of this, and I would venture people with incomes totaling more than 250K have at least one other thing "not supported yet" and it makes for an easy filter.
- dcre 3y agoSeems obvious it's a way of capping the complexity of the filings. Have to draw lines somehow. Dollar amounts are pretty clear.
- PopAlongKid 3y ago> the math for $1499 interest is no different than $1501 interest. This particular limit must be because once over $1,500 of interest, a Schedule B must be included with Form 1040, adding complexity they had to leave out of scope for now. In general, the higher the AGI, the more complexity as various phase-outs start kicking in, requiring more forms or worksheets.
- MarkSweep 3y agoThere are a couple of forms that you only have to file if your income is $200k or higher. 8959 (extra Medicare tax) and 8960 (net investment income tax) are examples. Child comments point out the schedule b for interest over $1500. So it higher income returns are more complicated.