To clarify, friends with businesses write things off on their sch C or business return. 95% of America is using the new standard deduction. If your itemized deductions are higher, you should be using them.
Yes, the perfect storm. When things swapped over to the increased standard deduction, the W4 charts changed and everybody got bigger paychecks. That change in the W4 chart, did not help you. Your tax bracket did not change between the 2 years.
You should be gathering all income and checking federal withholding every 3 months when things are so turbulent. Adjusting your W4 to compensate for the changes throughout the year as needed.
I recommend using:
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