topic Re: Deductions in Deductions & credits

Deductions

colee626 — Sat, 12 Feb 2022 22:23:37 GMT

We made $8,000 less in 2021 than the last 3 years, have almost identical deductions, and yet we owe federal taxes of $5,400. For the past 5 years, we have broke even or paid $100 in federal taxes. What is different for the 2021 filing year? Why can I only take standard deductions of $25,100? When I try to do itemized deductions, it is less. My itemized deductions for 2020 year were $35,000.

Re: Deductions

FangxiaL — Sat, 12 Feb 2022 23:20:49 GMT

Here could be several possible reasons why you owe instead of a refund:

Received advance Child Tax Credit payments.
Adjusted your withholding to maximize your take-home pay.
Received unemployment benefits, but did not have taxes withheld.
Having a child who turned 18 in 2021 and now receives the Credit for Other Dependents instead of the Child Tax Credit.
Your mortgage balance has decreased from 2020 which will lower the amount of mortgage interest paid.

Also, check to make sure all the taxes withheld amount was entered correctly.

Re: Deductions

SweetieJean — Sun, 13 Feb 2022 00:34:35 GMT

There may also have been a change in the EIC.

Re: Deductions

colee626 — Sun, 13 Feb 2022 00:49:36 GMT

I did not change tax withholdings. We received exactly $1,000 each for Child tax credit. No unemployment, no children turned 18. Very little change in mortgage, especially for such a great difference of $5,400. Just looking to understand. Turbo tax won’t let me deduct more than $25,100, even though when I go to itemize the math is more for that.