It can be for many reasons. If, for example, part of your social security income is taxable, and if you had no withholdings on that, it could cause a tax balance due. Likewise if your W-4 is completed in a way that reduces the federal tax withholding more than it should, it could make you short. The following article could give you an indication.
Take a copy of your last year's 1040 and compare that with your 1040 for this year. It may help you figure out the differences.
How to determine if any of your social security should be taxed:
The maximum amount of social security benefits that can be added to your tax return is 85% of your total benefits.
- if half of your social security, combined with your other taxable income is below the following base amounts, then none of your social security would count as taxable income.
- The base amount for your filing status is:
- $25,000 if you're single, head of household, or qualifying surviving spouse,
- $25,000 if you're married filing separately and lived apart from your spouse for the entire year,
- $32,000 if you're married filing jointly,
- $0 if you're married filing separately and lived with your spouse at any time during the tax year.
- Social Security Income FAQs
There are general guidelines to keep in mind when completing your W-4 for each employer. First, if you know your income will be subject to income tax without any additional income from a spouse, then if you do have a spouse, every dollar your spouse makes will be subject to tax at your highest tax bracket. The link below will show you the rates based on your taxable income amount. The following link may be helpful. Make sure to read the paragraphs below before you begin.
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