Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 12, 2021 2:54:28 PM

I don’t understand how I owe an additional 3,400 in taxes when al my taxes were taken from my wages.

0 3 342
3 Replies
Expert Alumni
Feb 12, 2021 3:22:51 PM

Print out a copy of last year's return, compare it to this year. Look for changes. Tax withheld on W2, income, child tax credit- did one of your kids turn 17?, go through and compare the forms. Find what is different. Once you locate the cause, we can go back into the program and maybe change an answer.

 

It could be the perfect storm of kids turning 17, raise at work into new tax bracket, payroll not withholding enough and so on. Best to really compare the 2 forms.

 

You should change your W4  at work to have them withhold a different amount of tax.

  • You can change just the state withholding amount if you like.
  • You can change your W4 at work as often as you like.
  • You can also use the IRS W4 planner anytime throughout the year.
  • Choose a larger or smaller refund vs money in your pocket throughout the year
  • When you have salary changes, you can keep up with your correct tax bracket at TurboTax Bracket Calculator.

New Member
Feb 13, 2021 11:49:30 AM

I don’t have any kids. I’m single. Only difference was I made about 10,000 more due to a 3 month wage increase due to COVID-19 and some serious overtime. All according taxes were taken out. If it wasn’t for the COVID pay increase I would have only made half that. The W-2 is correct I’ve had it checked by the previous employer I had at the time. 

Employee Tax Expert
Feb 13, 2021 12:04:29 PM

There are a lot of factors that could effect your tax refund or amount due from year to year. Even though you withheld the same percentage on your check, you could owe more taxes by being in a different tax bracket by making the extra money you did. This would increase not only your taxable income, but also your tax bracket (the percentage you are taxed). 

 

2020 Federal Income Tax Brackets and Rates for Singles:

 

12%   $9,876 to $40,125

22%   $40,126 to $85,525

24%   $85,526 to $163,300

32%   $163,301 to $207,350

 

Some of the other reasons you could see an increase in tax are:

  • You no longer qualified for the Earned Income Credit
  • You paid off your student loan and cannot deduct any student loan interest
  • You are no longer eligible for education credits
  • You sold investments
  • You had a distribution from a 401k that was not related to Covid-19

To further understand the exact differences, you would have to do a line by line comparison of your return as stated above by AmyC. 

 

@btf1031