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Get your taxes done using TurboTax
If you are looking at the change from 2020 to 2021, you should also consider whether the type of income you are reporting has changed in addition to simply reporting higher taxable income.
For example, if you reported qualified dividends or long-term capital gains during 2020, but a lower amount during 2021, that could have played a part in the lower taxes shown for 2020 because more of your income would have been taxed at more favorable rates.
Another consideration is whether you are reporting income subject to self-employment tax (Schedule C income). Self-employment tax is calculated separately from income tax, but it is included in your overall taxes owed.
The best way to see what has changed and try to explain the differences would be to compare both returns line by line. Doing this may further explain the situation you are seeing.
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