If you normally receive refunds but owe money this year, I would highly recommend you compare this year's Tax Returns to last year's Tax Returns line by line to pinpoint any differences. Doing this may help you find a mistake or help you see exactly what is causing you to owe money this year.
There are many reasons that you could end up owing money this year when you received a refund last year. Some of the most common reasons in addition to an increase in income include:
- Your Federal and/or State Tax Withholding as a Percentage of Income decreased
- You deferred less income into your Employer-Sponsored Retirement Plan or Flexible Savings Plan
- You have a type of income this year that you did not have in previous years (Capital Gains, Dividends, Interest, 401(k) Distribution, Etc.)
- You qualified for a Tax Credit last year that you didn't qualify for this year
- You deleted a Dependent or your Dependent reached the age of 17 during the year
- You changed your Filing Status
- If you Itemize, your Itemized Deductions were lower this year compared to last year
Check out the TurboTax FAQ below for more information regarding a decrease in your refund from prior years:
https://ttlc.intuit.com/replies/3301788
