How do i owe $3 this year?!

[dbrookshaw88]

I made double in money but i also paid double in taxes. My deductible even went up this year and somehow i still owe taxes. Mind you its only $3 but last year i owed $1300 and now this year im getting no return while paying almost 10k in taxes across the board?! What tf? I have also seen multiple people with different incomes and different situations also claiming they owe $3 how can this even be possible?

Someone help explain this!

[xmasbaby0]

We cannot see your screen, your return or your account.  Have you entered ALL of your 2022 information?  All your income, etc.?  Many tax documents that you need do not arrive until late January or even February, so maybe you do not have it all there yet.

There is no recovery rebate credit (stimulus $) for 2022.  The childcare credit is not refundable. The child tax credit is different.  And for some people, earned income is different because there is no “lookback” to an earlier year.  Those are some of the reasons your refund may be less.

There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc.  You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17?  If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC)  Are you 65 or older ?  If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.

And…..the child tax credit is very different for 2022    For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back.   The maximum amount of the child tax credit is now $2000; the refundable “additional child tax credit” amount is $1500.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500.  If your child is older than 16 at the end of 2022, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.

https://ttlc.intuit.com/questions/1901008-why-did-my-refund-go-down-compared-to-last-year-s

Print out 2021  and 2022  and compare them side by side to see what is different. 

[dbrookshaw88]

Omg i hate these canned answers, why would i have a child tax credit or anything else you mentioned as a single filer. For Christs i file single, no kids, no wife no tax credits etc, no dependents, i work for a company. every year i have always received money from the IRS for paying to much i changed nothing in the way i filed and now i supposedly owe. And i am not the only one its shady. 

now can i please not get a canned answer! 

[xmasbaby0]

@dbrookshaw88 Believe it or not there are Single people with children who claim them as dependents.   So that you filed single did not rule out that you could have been expecting CTC.   Again....we cannot see your return.  Since child-related credits are not the issue, the most likely reason is that you did not have enough tax withheld during the year to get a refund.

But you came out almost even with the IRS.  Instead of giving the IRS an interest free loan all year, you had enough withheld to come out owing only three dollars.  If you want to give them an interest free loan for 2023 and get a bigger refund next year, change your W-4 and have more withheld so your refund will be bigger next time.

https://www.irs.gov/individuals/tax-withholding-estimator

https://www.irs.gov/pub/irs-pdf/fw4.pdf

[dbrookshaw88]

Don't pull that “oh you broke even” crap either, thats the go to when someone can’t logically explain how i been filing taxes year over year and almost always got a tax return, this year i make the most. I paid the most and somehow i owe $3. 

also my screenshots above are telling you what you need to know. 

again i paid almost 10k in taxes across the board.  About 5-6k federally and they want $3 from me after taking $3k in taxes which is more than double last year. 

^ this is a paystub from the end of November, its 8k before counting December which i got 3 checks and taxed for about $350 a check thats another 1100.00 

so again explain to me how tf do i owe! 

[xmasbaby0]

https://ttlc.intuit.com/turbotax-support/en-us/help-article/income-taxes/federal-tax-rates-2021/L5Iz...

[SteamTrain]

Yeah...but your own figures up near the top...show an $827 Federal credit in 2021.  and $0 in 2022

In my 2021 test file with 16,000 W-2 income...that's ALL due to the free EITC (earned income tax credit) that the IRS gave to you.  And you didn't get it this year (2022) because your income exceeded the limits for when they dole out those free $$.

The Feds give that credit to working, low income folks as kind-of a reward for at least trying to work during the year...but it phases out before 30,000 of working income.

[xmasbaby0]

We are not going to  calculate your refund/tax due down to the penny for you.  But based on the amount of income you received, the amount you had withheld, and the tax brackets, your tax liability is just shy of $3000.  So.....

[dbrookshaw88]

You keep telling me crap i know already like im a **Bleep**! Just stop replying.

paying $3k personal tax then paying about $3k in medicare and social security also is bull**bleep** then on top of that they have a nerve to say I didn’t pay enough. You all know its nonsense 

Tax drones removed photos showing illegal taxation.  

[dbrookshaw88]

In 2021 i owed $1300 in taxes because of the SSI tax waiver.