I've snipped the Federal totals below and wondered why the Federal Tax due for 2021 was over $10k even though the numbers are very similar to 2020. I've gone through everything in the Federal tab and can't see any reason for this significant difference. Please help - thanks.
Yes, your income is very similar, but there must be a reason why the result is so different. Tax rates were not increased for 2021.
The first thing I noticed is that you have $0 paid in for this year, so no withholding at all and no tax credits. Last year you had close to $2000 in withholding and/ or credits.
The best way to find out why your tax is so much higher is to ask TurboTax to explain why:
I had the same question in reverse, I didn't know that Turbo Tax had this "explain why" feature.
I am excited to find it.
I had same total income but more from Social security Benefits (part year 2020 full year 2021) andI ended with 1/3 of the taxes. I just trusted Turbo Tax and sent it in.
Now I will go get more details! THANK YOU!
@Nan2C Yes you can owe more tax if you have more social security.
Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:
Married Filing Jointly: $32,000
Single or head of household: $25,000
Married Filing Separately: 0
To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the right side.
Here we go again with the different versions.
I am on desktop mac download version.
I clicked on Review. HUNTED for awhile and don't know how to get to the "explain why" that you reference
I am not finding anything
Can you tell me step by step (I have already filed... curious!)
how to find where turbo tax came up with 1/3 of the tax I paid last year! LESS waaaay LESS
Thanks again