Based on what you stated, I agree.
There are three factors that will determine the size of your refund (or what you owe).
- The total amount of income that you have.
- The amount you had withheld from your wages.
- Whether you qualify for certain tax credits.
Your income determines the amount of tax you owe. This not only includes your wages, but also any other type of income you may have had. Identify any other income you may have had. . Based on criteria established by the IRS there are tables that determine the amount of tax that you owe. Double check your income entries and make sure they are correct.
The amount you had withheld generally come from your W-2 income; however, taxes can be withheld from other forms of income. If the taxes withheld is more than what you owe you will get a refund. If not, you will owe money. Again, double check your entries and be sure they are correct.
You can subtract Tax Credits from the amount of tax you owe. Here are some common Credits:
If you look on your tax return FORM 1040 you can check these entries.
- Line 19 Child Tax Credit
- Line 27 Earned Income Credit
- Line 28 Additional Tax Child Tax Credit
- Line 29 American Opportunity Credit (For College)
- Line 30 Recovery Rebate Credit
- You also may have had more taxes withheld on your income.
Compare your tax credits to what you had last year. This is the most likely place for a large amount to be.
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Thanks John! I have double checked all of my information and it is still saying I owe $800. I have the most amount of taxes taken out of my paychecks, am 22 years old, a full-time student, and my parents claim me as a dependent. Like I said perviously, I have never had any issues with this before, and am just confused at why this year it's so much different!
Yes, For 2020, he standard deduction amount for an individual who may be claimed as dependent cannot exceed the greater of $1,100 or the sum of $350 and the individual's earned income not to exceed the regular standard deduction. If your parents claimed you as dependent on their 2020 income tax return, you may only enter $1,100 as your 2020 standard deduction.
For example, if income was $13,000, then your standard deduction as a dependent was $1,100.
- Adjusted Gross income $13,000
- Less: Standard Deduction 1,100
- Taxable Income 11,900