Get your taxes done using TurboTax
One possibility is that you have an earned income credit that can decrease when your income decreases. If the decrease in the credit is larger than the decrease in your tax, your tax can increase even as your income decreases. You can look at your Form 1040 line 27 to see if you have an earned income credit.
To view your form 1040 and schedule 1 to 3:
- Choose Tax Tools from your left menu bar in TurboTax Online
- Choose Tools
- Choose View Tax Summary
- See the Preview my 1040 option in the left menu bar and click on it
- Choose the Back option in the left menu bar when you are done
Also, you need to make sure you are entering the cost basis adjustment properly. Since you are dealing with company stock, you may need to increase the cost basis reported on Form 1099-B to compensate for ordinary income associated with the company stock reported on your W-2 form. It is often best to do that computation outside of TurboTax and simply enter the correct cost basis for each sale listed on your Form 1099-B. You will see an option for this when you enter the Form 1099-B in TurboTax:
When you are done entering your investment sales, make sure you review the investment summary screen to insure your gains or losses are property stated:
