Owing more than double what we normally owe

Forum|Forum|4 years ago
July 27, 2022
2 replies
38 views

We owed more than double this year compared to last. How can we avoid owing som much moving forward?

OpeA1

Level 6

Hello Marcandjeanna!

The amount you owe the IRS is based on the amount of income you made in the year. There is a tax table you can use to determine how much you'll be owing. Here is a link to that https://ttlc.intuit.com/turbotax-support/en-us/help-article/income-taxes/federal-tax-rates-2021/L5IzYLix5_US_en_US?uid=l63tcr85

The best way to reduce your taxes is to increase deductions (reduce your taxable income) or credits (reduce your actual tax ). Here is a link to help with that https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/standard-deduction-differ-itemizing-deductions/L4CTwCJ3L_US_en_US?uid=l63tgdmx

I hope this helps.

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conniem123

Level 7

I understand it is not fun to find out when filing your tax return that you owe! Not having enough withheld from your earned income, or making estimated payments if you are self-employed, can result in a large tax due.

You will want to make sure that you have enough withheld from your income. You should each submit an updated Form W-4 to your employers. There is a great resource, a W-4 Calculator, to walk you through the steps of the new Form W-4.

https://turbotax.intuit.com/tax-tools/calculators/w4/

Keep in mind if you have dependents and still need more tax withheld, then reduce the number of dependents you enter on your Form W-4.

Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding.

I hope you find this helpful!

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