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New Member

why I owe so much in taxes? I have taxes taken out of everything I receive and do not claim anyone until I file. I am retired and don't understand why I owe so much.

I receive social security, retirement pension, and I have a part time job - all of which I have taxes taken out.  I don't claim anyone until I file and then I only claim myself.  But I still have a $1500 tax bill.  Why is that????

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Expert Alumni

why I owe so much in taxes? I have taxes taken out of everything I receive and do not claim anyone until I file. I am retired and don't understand why I owe so much.

You could owe because there was insufficient withholding on each income, or because your additional income caused your social security to be taxable.

 

You can remove your social security temporarily to see if it is causing the problem.

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Level 15

why I owe so much in taxes? I have taxes taken out of everything I receive and do not claim anyone until I file. I am retired and don't understand why I owe so much.

When you have a tax due on Tax Day  that is undesirable, adjust your withholding amounts accordingly or make estimated tax payments quarterly.

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Level 15

why I owe so much in taxes? I have taxes taken out of everything I receive and do not claim anyone until I file. I am retired and don't understand why I owe so much.

Each W2 and 1099 only took out withholding for that one job or retirement.  And the IRS changed the withholding tables so you got more in your checks during the year instead of a big refund.

 

But your total income combined put you into a higher tax bracket and made more of your SS taxable.  Because we have a progressive tax system.  The more total income you make you pay a higher percent for tax.