So I'm having a difficult time understanding my taxes for this upcoming tax season and could really use some help.
I 2023 I will make an estimated 105,000. We will file married filing jointly and have 4 children, all 4 qualify for the child tax credit. Now in every 2023-2024 tax calculator I use they all say either I will slightly owe the irs say 200$ or my refund will be about 200$.
What I don't understand is how I if I am in the 12% tax bracket after the standard deduction of 27,700 will my refund be so small? According to the tax bracket my estimated taxes owed would be about 11-12,000. With a standard deduction how is that sml refund or tax bill coming about?
I am by no means a tax expert. I have trouble with this most years but doesn't my estimated taxes owed have to amount to more than the standard deduction of 27,700 before I'd owe anything to the irs?
From what I can understand my 8,000$ in child tax credits is being wiped out by something I'm not seeing.
Also I don't pay any federal taxes throughout the year per the irs w4 estimation tool which says a family of 6 with 4 dependents shouldn't owe taxes.
Am I owing a huge tax bill that's wiping out the child tax credits? Or are the tax calculators just not showing a refund including the child tax credits?
