Taxes

@Robert522 

We cannot see your tax return so we do not know why you owe federal tax this year.  The usual reason would be that you did not have enough tax withheld from your paychecks during the year.

No one in this user forum can see your tax return or your screen.  There were major tax law changes that began with the 2018 tax year that seem to continue to surprise some people.  Personal exemptions of over $4000 per person were removed beginning with 2018 returns.

One thing that may be affecting your refund is that employers began withholding less tax when the new tax law passed.  Your paychecks were more, but that means a smaller refund now. 

There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc.  You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17?  If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC)  Are you 65 or older ?  If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.

And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.

https://ttlc.intuit.com/questions/1901008-why-did-my-refund-go-down-compared-to-last-year-s

Print out 2018 and 2019 and compare them side by side to see what is different.

https://www.postbulletin.com/news/business/tax-preparers-warn-your-refund-may-be-smaller-than-usual/article_2019b754-4d83-503e-ac96-17e0ffcde602.html

https://turbotax.intuit.com/tax-tips/tax-payments/video-why-would-i-owe-federal-taxes/L3VXudPiN

You will need to file a tax return for 2020, even if you did not have a filing requirement.

The stimulus payment amounts issued in 2019 or in January 2020 were based upon your 2018 or 2019 income tax returns filed.

The amount of the Rebate Recovery Credit is based upon your actual 2020 income tax return you file.  Therefore, if you meet the criteria for the credit, you will receive it when you prepare your 2020 income tax return.  The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns.  Any excess credit is then refunded to you if there is an overpayment on your tax return.

Please see the attached link for more information on who can claim the credit.

Recovery Rebate Credit eligibility

When you prepare your 2020 income tax return, be sure to do the following to ensure the credit is calculated correctly on your income tax return.

In the Federal section, select the Federal Review interview section at the top of the screen.

This will take you to the input section for the Recovery Rebate credit.

Be sure to indicate the actual amount of each stimulus payment you received on the page that asks if you received a stimulus payment. 

There will be two boxes and both need to be completed.  If you did not receive any stimulus payments, please indicate We didn't get a stimulus payment by checking that box.

Once you file your 2020 income tax return, the IRS will process your third stimulus payment if you meet all of the requirements to claim it.

How will the 3rd stimulus affect me

@selenapierce19

If you are unsure if your tax return was successfully submitted and e-filed please see this TurboTax FAQ: How do I check my e-file status?

@Katynelson