I'm trying to Amend

[xShadowMoses]

I moved from California to Arizona but I never had two W-2's before so I had no idea I had to do them at the same time. Did one, now I'm trying to amend the one I got in California. I made less than 8,000 from both states due to the pandemic but it's saying I owe 800 in federal taxes? I've made more in previous years and never once paid even half that amount. I'm trying to fix whatever is going wrong and frankly panicking like crazy over it. Any ideas???

[KrisD15]

Are you saying that you filed with only one W-2 and now you are amending your federal return to add the second W-2?

Are you saying that the amended return now shows you owe 800?

An amended return always acts as if the fist (original ) return has been processed and you received the original refund (or paid the original tax). 

So with that said, would it make sense that you might need to pay 800 BACK? 

[xShadowMoses]

I've never had to owe anything before when I made more money with one job. I'm trying to Amend my federal to add another W-2. I wouldn't know why I would have to owe but I read that people that have had more than one job usually owe. I'm not entirely sure why 

[HelenC12]

Most people see their refund go down, sometimes by a lot, after entering a second W-2. This is because we start you off with the full standard deduction, which we subtract from the income you’ve entered so far.

You don’t get this deduction with each W-2 you enter, just the first one. This means your second W-2 will appear to be taxed more, but what’s really happening is that you’re getting a more accurate picture of your income.

To see an example of how this affects your income tax return, click here.

[xShadowMoses]

So is it likely that I'll owe that actual amount then? I'm still new to taxes and trying to wrap my head around it. I just don't want to pay that amount if it's not accurate but if it's accurate then I'll pay 

[MayaD]

It is hard to tell why you owe without being able to look at your return.

Generally speaking, if your earnings are less than the IRS standard deduction, you don't owe tax, since effectively all of your income is automatically deductible. 

These amounts vary from year to year and are based on your age and whether you're single, married filing jointly or some other filing status.

Review your return to make sure your entries are correct. 

[xShadowMoses]

I've gone over my entries but the only thing that changed was my California state refund. The moment I put in my second W-2 from Arizona it jumps but never goes down. I sat down and tried to figure it out but I just can't. I put in all the details I could but I'm just starting to think I'll owe

[JotikaT2]

If your income increased but if you did not have enough withheld in federal and state income taxes, it is entirely possible that you may owe now.

Another situation that could be possible is you entered your wages and that may have put you into a higher tax bracket.  

Please see the link below for the tax brackets in effect in 2020 to determine if this could be the reason you owe money with your federal tax return..

Tax bracket calculator

[xShadowMoses]

I've made more in the past and I've never owed, I only made about 8,000 and owe 800. I think it may be due to withheld because I had two jobs at seperate times in the same year.

[DMarkM1]

You have mentioned both CA and AZ in your posts.  Did you have part year residency in these states or did you live in one of them and work in the other?  You mention that the only thing that changed was your CA tax amount when you entered an AZ W2.  Most likely the AZ W2 had no CA withholding and it would be taxed by CA depending on your residency status in TurboTax thus increasing your CA tax.

If you would clarify your resident states and work states situation someone may be able to assist with more specifics on your situation.

[xShadowMoses]

Part time residency in both, I lived in California my whole life until 9 months ago then I moved out to AZ

[JotikaT2]

You will need to make sure you have entered your residency information correctly into the program then.  Based upon what you have said, you actually would have 2 part-year resident state returns that need to be filed.  The first return will be for California for the period January 1, 2020 until you moved to Arizona.  Your second return will be for Arizona and will cover the period from your date of move until the end of the year.  

When you prepare your amended return, make sure you have updated your information as follows to ensure both returns are calculated correctly.

In the My Info section of TurboTax, confirm that you have entered the correct state information: 

1. Click "Edit" to the right of your name 
2. Confirm your input under #2 "Tell us the state(s) you lived in" 
3. Confirm the rest of the state-specific questions here as well including the "previous state of residence" and "date you became a resident" of the state noted 
4. Do the same for your spouse if you are married filing jointly. 
5. Go back to the personal information section, and verify the mailing address and "Other state income" section. 

Review your input on your W-2 Wages under the "Income & Expenses" section. 

Confirm that you have entered the correct state for each W-2 in Boxes 14-15. 

This will then allow you to enter your state returns for the part-year resident states. 

Prepare the part-year resident state tax return for the state you no longer reside in first.  Be sure to answer the questions carefully as you only want to report the income earned in while residing in that state.  You should now see screens allowing you to allocate your capital gains or losses as well.

Once you have entered all of the first part-year resident information, then start your part-year resident state tax return for the state you reside in as of December 31st, 2020. 

If you are still showing a high tax obligation on your federal return, as mentioned before, you may just owe taxes as it sounds like you did not have enough in federal income taxes withheld on your earnings for that second job. 

[xShadowMoses]

Thank you for the info! I did do the instructions you listed and made sure I was part time in both states. However, the amount is still there so I do believe that I owe.