Hi all,
I did our taxes last night (married couple, no dependents, filing jointly) and I think there was some sort of mistake. TurboTax suggests our tax liability is twice as high as a simple calculator -- what does it know that I don't?
Here's our setup:
- AGI of $50,400 (comprising $18,400 regular W2 income and $32,000 from backdated Covid-Related Withdrawal, i.e. we cashed out $96,000 during COVID and spread repayments out in thirds so $32k is taxable this year).
- Standard Deduction reduces taxable income by $25,900
- Taxable Income of $24,500 (TurboTax confirms this)
- Total tax of $5,400 (???) (TurboTax says this)
A popular web calculator for Nerds who like Wallets suggests our total tax owed should be about $2,500 not $5,400. So did I screw this up? Can anyone see something that I'm missing?
I don't have that much money in my account so I will be a late filer. We are quite worried, and hoping someone can point us in the right direction. Any help would be much appreciated.
Kind regards,
Shawn
