I put my 1099 wages into a W2 format and got a tax refund. I fixed it in the 1099 box and now I owe taxes. Is income taxed lower in W2 category than 1099?

[gingersmom2]

I mistakenly put my pension benefit into a W2 form in turbo tax, system said $2000 federal refund. I moved it to 1099 box and now I owe 4000! What gives

[KrisD15 · Accepted solution]

I would guess you may have gotten a credit, such as the Earned Income Credit, when the income was reported as earned income on Form W-2 and lost the credit when the income was properly changed to retirement income. 

Please look over your Form 1040 to see if there are credits that changed,