My wife was unemployed for part of 2019 and not enough money was withheld from her unemployment payments, so we therefore had a large Federal Tax payment that year. Additionally, Turbotax recommended that I pay estimated taxes of $9000 during 2020, which I paid the full amount before the end of 2020. Additionally, we took the standard deduction these years, and both my wife and I (empty nesters) have the maximum standard amount withheld per W4's.
BUT, Turbotax is telling me I owe nearly another $3000 dollars for 2020. WHY? It is a very simple return. We don't have any other income. And, I stated above, we filled out our W4's to withhold the maximum standard amount. If I have to pay an extra $3K now, after paying an estimated $9K over the year, I'm terrified about next year's taxes, as I don't understand what happened to such as simple return.
(I have purchased the CD/Download Deluxe or Premium versions [this year only needed Deluxe] for the past 20+ years. I did not see a warning that I would not be able to use the Tax Experts advertised on TV if I used this method instead of the Online version.)
Not taking into account any federal taxes already withheld from your income, based on what you have reported for taxes paid and owed you have taxable income in excess of $90,000.
You need to adjust your withholding on the income you receive.
Use the IRS withholding estimator - https://www.irs.gov/individuals/tax-withholding-estimator
Not taking into account any federal taxes already withheld from your income, based on what you have reported for taxes paid and owed you have taxable income in excess of $90,000.
You need to adjust your withholding on the income you receive.
Use the IRS withholding estimator - https://www.irs.gov/individuals/tax-withholding-estimator