Much higher tax owed this year.

[repatrick]

I'm attempting to prepare my 96 yr. old mother's taxes, which I did for her last year after my father passed away in Nov. of 2022.  Last year, their combined AGI was just over $109,000, and she received a refund of about $4,400.  This year, with her income from Social Security, Investments, and income from my Veteran father (DFAS), the AGI was $75,854, and it shows her owing $3,585.  This seems like a big difference, and I wonder if I've done something wrong.  Can anyone give me advice, or if further information is needed, I can provide it.  Thanks for any advice!

[Vanessa A]

Did she have taxes withheld for 2023 out of her social security or something and then none withheld for 2024?  If she went had a refund of over $4,000 with an AGI of $109,000, she apparently had a large amount withheld.  Then, this year, if she had an AGI of more than $30,000 less it seems like a withholding or estimated payment issue.  

 

[VolvoGirl]

How did she file for 2023?  Single or Joint?  If he died in 2022 that would be the last Joint return.  So 2023 & 2024 should be Single.  Last year did you set up a new return for her and not transfer from 2022?  It may have brought his 2022 info over.  Last year should have been only her but you said their combined AGI.   It should only be her AGI.  

[repatrick]

My Dad had income through November of 2022, so I included that in the 2023 return.  The filing status was Married Filing Jointly.  Was this incorrect?

[JustAnotherNerd]

If those two numbers you mentioned - $4400 and $3585 - represent the amount she gets or pays as of April 15th, and not her total tax, then I would look closely at how much was withheld or paid with estimated payments each year.  Depending on where the money came from, the withholdings could be very different.  For example, dividends and stock sales usually don't have taxes withheld automatically, while wages typically do.  Perhaps in the past your father was making estimated payments and your mother didn't know she needed to do them this year.

[VolvoGirl]

---

@repatrick wrote:

My Dad had income through November of 2022, so I included that in the 2023 return.  The filing status was Married Filing Jointly.  Was this incorrect?

---

Let’s back up.   Are you talking about the tax return you did in 2023 for 2022?  His income should have gone on their Joint 2022 return.  Did you include it on the 2023 return you did in April 2024?  Tax returns go by the year ending on Dec 31, not the year you file it in.