Deductions

[colee626]

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.  

[FangxiaL]

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.

[SweetieJean]

There may also have been a change in the EIC.

[colee626]

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.