If you owe State Taxes this year but didn't last year, I would highly recommend you compare this year's State Tax Return to last year's State Tax Return line by line to pinpoint any differences. Doing this will help you see exactly why this year is different than last year.
There are many reasons that you could end up owing State taxes this year when you didn't last year. Some of the most common reasons include:
- Your State Withholding as a Percentage of Income decreased
- Your Income Increased or Decreased
- You deferred less income into your Employer-Sponsored Retirement Plan or Flexible Savings Plan
- You qualified for a Tax Credit or Deduction in previous years that you didn't qualify for this year
- You have a type of income this year that you did not have last year (Capital Gains, Dividends, Interest, 401(k) Distribution, Etc.)
- You changed your Filing Status
- You deleted a Dependent or a Dependent turned 17 during the year
- If you Itemize, your Itemized Deductions were higher last year
