Doing my sisters taxes, she has her job, SS and a small retirement income, paid her taxes all year, and now OWES! I certainly must be doing something wrong??

[Rachel_W · Accepted solution]

If your Sister normally receives a Refund, I would highly recommend you compare this year's Tax Return to last year's Tax Return line by line to pinpoint any differences.  Doing this will help you see exactly why she is coming up with a Balance Due this year.  Also, double check your input to make sure everything has been entered correctly in TurboTax.

There are many reasons that she could have a balance due this year even though she received a refund last year.  Some of the most common reasons include:

• Her total Income Increased
• Her Federal and/or State Tax Withholding decreased
• She deferred less income into her Employer-Sponsored Retirement Plan or Flexible Savings Plan
• She qualified for a Tax Credit last year that she didn't qualify for this year
• She deleted a Dependent or a Dependent reached the age of 17 during the year
• If she Itemizes, her Itemized Deductions were lower this year compared to last year
• She changed her Filing Status

Check out the TurboTax FAQ below for more information regarding a decrease in your refund from previous years: 

https://ttlc.intuit.com/replies/3301788