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Returning Member
posted Feb 25, 2023 4:11:49 PM

I earned $62,000 less in 2022 than in 2021 with close to the same dollar figure in deductions but I owe the IRS only $782 less than last year, why?

2021 adj income=$158K 2022 adj income=$96K I became semi-retired

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5 Replies
Level 15
Feb 25, 2023 4:17:35 PM

how much did your withholding go down? that would substantially offset the decrease in income taxes

line 25d both years.

 

Level 15
Feb 25, 2023 4:32:19 PM

you should owe the IRS about $14,880 less, so, why indeed?

 

@gmarockson 

Returning Member
Feb 25, 2023 4:41:40 PM

My withholding in 2021 was commensurate with what I earned.  But I just realized what the problem was by doing this exercise.  I neglected to update something on my W2 when I retired - it slipped by me because I did actually retire and then went back part time.  Thank you - that explains the difference - I would not have thought that it would have caused such a huge hit since the actual withholding shortfall would amount to maybe $2000 - anyway that is what it looks like in the pay stubs from before I made the correction and after.  

Level 15
Feb 25, 2023 4:46:54 PM

what can you "miss", to the tune of $14,000. ?

@gmarockson 

Returning Member
Feb 25, 2023 5:00:05 PM

I had the box marked that implied that I itemized, which I do, rather than take the standard deduction.  my itemized deductions for 2022 were very close to what they were in 2021 - maybe $1300 less