- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Why did increasing my income by 6% increase my federal taxes by 53%
Using TTAX 2016 Home and Biz.
Initial import of income from Quickbooks was too low compared to actual sum of 1099's received. I corrected the amount in the inputting of the 1099's. Income went up 6%. OK fine, but with all else exactly as inputted the Fed tax jumped 53%!! I backed out the increase and it went to where it was before so it's all related to the increase.
What's the problem? I expected SOME increase in tax liability but this was nuts!
Topics:
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Regular tax plus self-employment tax. Also, deductions and credits can go down as your income goes up.
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
What dollar amount did it go up?
Did you have health insurance through the Healthcare Marketplace, and enter a 1095-A?
Did you have health insurance through the Healthcare Marketplace, and enter a 1095-A?
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Fed tax was $9320, jumped to $17,282. That's huge!! State refund of $323 vaporized and became a debt of $417.
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
What was the dollar increase in income? And which state?
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
and that's an 85% increase in Federal taxes, not 53%.
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
So your income increased by $25,000. For that to be a 6% increase, your prior income must have been over $416,000. Is that right?
June 6, 2019
3:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
I'm wondering if you are misstating or misunderstanding something. Was you TOTAL federal tax (Line 63 of Form 1040) $9230, or was $9230 the amount that you owed?
June 6, 2019
3:20 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
"Fed tax was $9320, jumped to $17,282. That's huge!! State refund of $323 vaporized and became a debt of $417."
It does sound like $9320 was what you owed.
It does sound like $9320 was what you owed.
June 6, 2019
3:20 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Thanks SweetieJean but looking at it another way the tax against the income was 2.3% and went to 4.1%. almost double. Don't know if $8000 is small not that much to you but it huge to me.
June 6, 2019
3:20 AM