standard deduction

Forum|Forum|6 years ago
February 26, 2020
1 reply
14 views

we made $10000 more last year and withheld $1400 more and still owe $1100 am I missing something here?

Everything was fine until i started with rental income.

TurboTax Home & Biz Windows

Opus 17

Level 15

$10,000 of new income will be taxed at your top rate, which could be 10%, 12%, 22%, 24% or higher. Plus state taxes. Owing $2500 on $10,000 of income (25%) is certainly possible for combined state and federal taxes. The only way to actually see the math is to print your last year and this year forms and compare them side by side.

kenny442Author

Level 2

this is just federal. Haven't started state yet

Opus 17

Level 15

2019 tax brackets are here. https://thecollegeinvestor.com/21804/federal-tax-brackets/

If, after subtracting your standard or itemized deductions from your gross income, your taxable income is more than $84,000 (single) or $166,000 (married) then any new income will be taxed at 24%.