I am hoping I gave done something really wrong. I have entered our information fir 2020 and out income has gone up about $11k from last year and we usually get about $2300 back. This year it says we owe $36k? How could this be? We are taking the standard deduction.
t depends, There are plenty of reasons why you paid more taxes this year than previous years. Previously, you may had less income, more deduction, and claimed dependents than this year, or vice versa. There are ways how to avoid paying more taxes on your income tax return:
- Contribute to a qualified retirement plan such as 401K, 457, 403B, and many more.
- Submit a new W4 to your employer to change your exemption
- Max out your retirement, if you already participated from your employer