You'll need to sign in or create an account to connect with an expert.
They didn't take out enough. And any increase in income can boost you into a higher tax bracket, and/or lower some deductions/credits.
They didn't take out enough. And any increase in income can boost you into a higher tax bracket, and/or lower some deductions/credits.
The one time payment put more of your income into a higher tax bracket most likely. If your employer withheld 20%, but that income was being taxed at a 24% or 32% rate, then you are at a deficit. You could also have some credits phased out with a higher income.
Also, the W-4 withholding amounts were revised a year ago because of lower taxes resulting from tax reform. If you were close to owing money in the past, you may want to lower your exemptions on your W-4. In my opinion, there was a bit of an overcorrection to the withholding amounts.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
cmosleyhull27
New Member
TedCar
New Member
roseadelle22
New Member
Gettxfin
Returning Member
eglmrk
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.